Kenya’s National Hustler Fund is set to receive a significant boost in the 2023–24 budget. The Treasury has allocated Ksh. 10 billion to the fund, emphasizing its commitment to empowering hustlers across the country.
Treasury Cabinet Secretary Professor Njuguna Ndung’u believes that this allocation will play a crucial role in fostering the growth and sustainability of SMEs. By providing access to credit, the fund will enable hustlers and SMEs to invest in their businesses and make meaningful contributions to the nation’s development.
In addition to the funding for the Hustler Fund, Professor Ndung’u has requested specific amounts for other key sectors. These include Ksh. 300 million for SMEs in the manufacturing sector, Ksh.182.8 million for the women’s enterprise fund, Ksh. 175 million for the youth enterprise and development fund, and Ksh.192 million for the Uwezo Fund.
The fund has been successful so far, with Kenyans having borrowed Ksh. 24 billion since its launch late last year, benefiting 19 million individuals nationwide. Notably, Ksh. 14.2 billion has been repaid, indicating a high level of financial discipline among the beneficiaries. The success of the fund is further evident in the number of transactions, which has reached an impressive Ksh. 43.5 million.
To encourage savings, the fund includes a savings component supported by partial government contributions, where taxpayers match one shilling for every two shillings contributed up to a cap of Ksh. 3,000 annually. Ksh. 1.5 billion has been saved as mandatory savings, while another Ksh. 17 million has been saved on a voluntary basis. Major banks such as Equity and Absa Kenya have shown interest in offering credit to creditworthy borrowers who graduate from the Hustler Fund.
The second phase of the Hustler’s Fund, aimed at facilitating people’s access to funding through groups, was launched on June 1 when President William Ruto presided over the Madaraka Day celebrations in Embu. The Hustler Fund is expected to deploy groups such as chamas* and SACCOs to overcome exclusion and barriers to participation in credit, savings, social security, health insurance, and other socioeconomic amenities.
In conclusion, the National Hustler Fund’s allocation of Ksh. 10 billion in the 2023–24 budget signifies the Kenyan government’s commitment to fostering economic growth and empowering hustlers and SMEs. By providing access to credit and financial services, the fund aims to uplift individuals at the bottom of the pyramid and promote inclusive economic development.
