Nairobi, February 25- Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya is pushing for an additional Ksh.8.4 billion allocation to the government’s credit facility, the Hustler Fund, citing inadequate funding in the 2025/26 financial year budget.
Speaking before the National Assembly Departmental Committee on Trade, Industry, and Cooperatives on Monday, Oparanya emphasized that the fund is a crucial government initiative that requires more resources to effectively support small businesses.
He noted that the MSMEs State Department had requested Ksh.25.99 billion for the upcoming fiscal year, but only Ksh.6.35 billion was allocated—Ksh.1.72 billion for recurrent expenses and Ksh.4.63 billion for development—leaving a shortfall of Ksh.19.64 billion.
“The Financial Inclusion Fund (Hustler Fund) needs an additional Ksh.8 billion for credit disbursement and Ksh.400 million for recurrent expenses,” he stated.
Since its launch in November 2022, the Hustler Fund has provided loans ranging from Ksh.500 to Ksh.50,000, offering an eight percent pro-rated interest rate. It was designed to support Kenyans previously locked out of credit due to blacklisting by credit agencies. Recently, it introduced higher credit limits and a credit score system to help borrowers access loans from banks and financial institutions.
In the 2024/25 financial year, Oparanya revealed that the Hustler Fund disbursed Ksh.62 billion to MSMEs.
Beyond the Hustler Fund, his ministry is also seeking additional funds for the Uwezo Fund—targeting women, youth, and persons with disabilities—and the Micro and Small Enterprises Authority (MSEA), which promotes the growth of small businesses in Kenya.
For the Uwezo Fund, Oparanya proposed Ksh.168.6 million for Constituency Uwezo Fund Management Committees and Ksh.450 million for restructuring the fund.
Additionally, he requested Ksh.542.6 million in extra funding for MSEA, with Ksh.112 million allocated for salaries and Ksh.430 million for rent, board expenses, and administrative costs. He also highlighted a Ksh.450 million deficit for equipping and operationalizing Constituency Industrial Development Centres (CIDCs), Centres of Excellence, and cold storage facilities.
