NAIROBI, Kenya, Oct 31 — Cooperatives and Small and Medium Enterprises Cabinet Secretary Simon Chelugui says he will hit the ground running to ensure that he abides by President William Ruto’s directive of launching the Hustler Fund by December 1.
Speaking when he was taking over the two ministerial dockets from outgoing CSs Peter Munya and Betty Maina on Monday, Chelugui noted that the Government intends to roll out the Sh50 billion fund in four phases starting with a product aimed at addressing personal finance and the final product will focus on boosting start-ups.
“We will begin by enumerating the Small and Medium businesses, and on December 1 we are offering four products. The first products will be the personal finance products and that is currently under development we believe beginning today we will not sit down, roll our sleeves and begin to work on a product,” Chelugui explained.
The CS stated the Hustler Fund is an intervention to address the biggest challenge among the youth and owners of small businesses.
He said the second product targetting Micro-business will begin in early 2023, and it will be followed by the unveiling of a product targeting SMEs and then start-ups.
“Micro-business will be supported through Savings and Credit Cooperative Societies (SACCOs) and the Chamas which are already in place. I have had a lot of discussions with SASRA, the regulator, and also the Commissioner of Cooperatives so that we can reach out to these established and organized collectives and we can be able to immediate impact by working with them,” he said.
Chelugui acknowledged that many Kenyans are in dire need of cheap credit and had huge expectations of his campaign promises.
He added the ministry is looking at avenues that will make credit products available to small businesses on digital platforms at affordable rates.
“In the end, we will be looking at the start-up, the young people in college and universities who have great ideas and may need support. They have always had their challenges and have been treated like anybody else and it is difficult for them to take off,” he said.
President William Ruto pledged in his manifesto to set aside Sh250 billion over five years for small businesses through the Hustler Fund, promising 100 percent access to affordable funds.
The fund promises to be the centrepiece of the President’s job creation agenda, especially with the outgoing government having extended the hiring freeze in parastatals, dashing the hopes of thousands of jobless Kenyans in an economy where companies are shedding jobs.
