Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya has called for an additional allocation of Ksh.8.4 billion to the Financial Inclusion Fund, commonly known as the Hustler Fund, in the 2025/26 financial year budget. Speaking during a Monday meeting with the National Assembly Departmental Committee on Trade, Industry and Cooperatives, Oparanya emphasized that the credit program remains underfunded despite being one of the government’s key initiatives.
According to Oparanya, the MSMEs State Department requires Ksh.25.99 billion for the upcoming fiscal year but has only been allocated Ksh.6.35 billion of which Ksh.1.72 billion is earmarked for recurrent expenses and Ksh.4.63 billion for development. This leaves a substantial funding deficit of Ksh.19.64 billion.
“The Financial Inclusion Fund (Hustler Fund) requires an additional Ksh.8 billion for credit disbursement and Ksh.400 million for recurrent expenses,” Oparanya stated.
The Hustler Fund, launched in November 2022, was designed to offer financial assistance to Kenyans who have been unable to access credit due to blacklisting by various credit rating agencies. The fund provides loans ranging from Ksh.500 to Ksh.50,000 at an interest rate of 8% pro-rated annually or a daily rate of 0.002%. Recently, the fund introduced enhanced credit limits and a credit score feature, enabling borrowers to leverage their repayment history when seeking loans from banks and other financial institutions.
Oparanya highlighted that in the 2024/25 financial year, the Hustler Fund successfully disbursed Ksh.62 billion to MSMEs, demonstrating its critical role in supporting small businesses across the country.
Beyond the Hustler Fund, Oparanya also requested additional funding for the Uwezo Fund and the Micro and Small Enterprises Authority, both of which focus on empowering women, youth, and disabled persons. He proposed Ksh.168.6 million for the Constituency Uwezo Fund Management Committees and Ksh.450 million for the re-engineering of the fund.
Additionally, the Micro and Small Enterprises Authority faces a shortfall of Ksh.542.6 million for recurrent expenses, including Ksh.112 million for personnel emoluments and Ksh.430 million for administrative costs such as rent and board expenses. The authority also requires Ksh.450 million to equip and operationalize Constituency Industrial Centres (CIDCs), Centres of Excellence, and cold storage facilities.
With mounting financial needs across these critical programs, Oparanya’s plea highlights the urgent need for increased budgetary allocations to support MSMEs, boost entrepreneurship, and enhance financial inclusion in Kenya.
