Wycliffe Oparanya, the nominee for Cooperatives and MSMEs Development Cabinet Secretary, has voiced his concerns regarding President William Ruto’s Hustler Fund. In response to Suna East MP Junet Mohamed’s inquiry about his stance, especially given his previous criticisms of the fund, Oparanya acknowledged that while the fund’s intentions were commendable, it was implemented too hastily.
“If well managed, the Fund would potentially be beneficial to alleviating people from poverty,” he said.
“The only problem with it was that it was launched in a hurry without adequate legal structures in place,” he added.
As a result, he said the Treasury allocated Sh13 billion and through the borrowing by Kenyans, the turnover has gone up to Sh55 billion.
“Out of that Sh55 billion, 21 million people have been involved in the repeat borrowing…in the process, they have been able to recover Sh43 billion and so in effect there is Sh12 billion which has not been recovered,” he explained.
Oparanya also confirmed that he was not aware of any details about the Hustler Fund until he received a briefing in preparation for the vetting process.
He noted, “While they have a strong digital infrastructure to track the allocation of this Sh12 billion, there is no legal framework in place to recover it, unlike Fuliza, where repayments are automatically deducted upon borrowing.” If approved, Oparanya pledged to implement robust regulatory mechanisms and enhance the board’s capacity.
President Ruto launched the Financial Inclusion Fund on November 30, 2022, with the goal of benefiting 15 million Kenyans. He stated that the initiative aims to free people from predatory lending practices, emphasizing the establishment of a culture of saving, investment, and social security.
Ruto highlighted the government’s commitment to creating opportunities for millions of individuals at the lower end of the wealth spectrum.
