The Cabinet Secretary Ministry of Co-Operatives and Micro, Small and Medium Enterprises (MSMEs) Development Simon Chelugui has revealed that out of the 15 million Kenyans that have borrowed from the hustler fund loan, 800,000 are struggling to repay.
The CS however said that the Government is proud of the strides the initiative has made and that the credit facility has made it possible to have Sh 22 billion in circulation countrywide.
“The fact that we are moving from fixed security to credit score is an indicator of the success of this initiative. The fact that there is Sh 22 billion in circulation is an indicator of the success of this initiative,” stated the CS.
He said that the Government is targeting to shift the approach to credit in Kenya from security-based to credit score based.
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Chelugui added that the Government is showcasing its collaboration with the private sector to deliver the hustler fund which is a government initiative.
“We don’t have a mobile network of our own, we don’t have our own banks, we work with private banks, we work with mobile networks but the source of the money, the initiative, the planning, the budgeting is all done by the Government. Our role as the Government is to oversee,” said the CS.
Chelugui noted that 18 million Kenyans have so far enrolled with the hustler fund and that three million have not yet borrowed any money from the hustler fund.
The CS who spoke when he toured Embu to inspect the ongoing renovation of Moi stadium that will host Madaraka Day on June 1 said that the Government will be running Small Medium Enterprises (SMEs) business exhibition events for a whole week in various parts in Embu before the Madaraka day celebrations.
“We will have a whole week of SMEs celebrations and exhibitions which will be climaxed with Madaraka Day Celebrations on June 1,” he stated.
He said that Government exhibition events are meant to promote SMEs because this year’s Madaraka Day celebrations is themed on Small, Medium, Enterprises and Co-Operatives.
He added that his Ministry will give SMEs in Kenya the priority and the seriousness the sector deserves saying Kenya rides on SMEs.
He lauded President Dr. William Ruto and the organizers of this year’s Madaraka Day Celebrations for recognizing the role that SMEs play in Kenya saying 98 percent of businesses in Kenya are SMEs.
He added that 15 million out of 18 million Kenyans are working under SMEs which is the informal sector adding the biggest challenge that the Government was facing is to transition workers in this sector to formal employment.
Embu County Deputy Governor Kinywa Mugo who was present during the function called on traders in Embu to seize the opportunity of the county hosting Madaraka Day celebrations so that they can reap from the event.