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Cabinet Secretary for Cooperatives and Micro, Small and Medium Enterprises, Wycliffe Oparanya, has warned Hustler Fund defaulters that they will soon be traced back to the accounts of the loans they took.
Speaking at the official launch of the Kenya Private Sector Alliance’s first annual SME conference, awards ceremony and exhibition, Oparanya stressed that defaulters will soon have nowhere to hide. The theme of the conference was “Unleashing the potential of SME financing and scaling up innovation for accelerated growth”.
He noted that the government has launched initiatives such as the Uwezo Fund, the Youth Fund and the Women’s Fund under the Ministry of Constituency, Youth and Women. The government is considering merging these initiatives with the Hustler Fund.
“Hustler Fund is a very innovative digital initiative. However, in the first round, 21 million people borrowed money but 19 million of them defaulted, leaving only 2 million borrowers who continue to borrow regularly. We plan to recognize and reward those borrowers who excel. There is already one person who borrowed up to Sh2 million and is running a successful business,” Oparanya said.
He stressed that these funds are public funds and can only benefit others if they are borrowed and repaid. “For the 19 million defaulters, I come to you to ensure that you repay the money so that others can benefit, and even you can benefit. If you borrow money and don’t pay it back, you can’t borrow again. I hope you can borrow money repeatedly to help you develop yourself,” he added.
The minister mentioned that the government will soon implement a system to track defaulters and ensure that they repay their loans for the benefit of others.
Oparanya also said that the government will create a favorable business environment for small and medium-sized enterprises and create employment opportunities. Small and medium-sized enterprises in Kenya employ 15 million people, while the government has only 1 million employees. Small and medium-sized enterprises are the country’s largest employers, providing employment opportunities for more than 80% of the working population.
During the event, the MSME Financing Portal operated by KEPSA was also officially launched to help businesses raise funds. Oparanya said he intends to address the issue of multiple taxes levied by counties, which are hurting the interests of SMEs and MSMEs. These enterprises are the backbone of the economy and contribute significantly to job creation, innovation and GDP growth.
The Kenyan Ministry of Finance has highlighted the critical role that SMEs play in driving inclusive and sustainable economic development in Kenya and creating positive social change.
He also hinted at reviving the six regional economic blocs that were inactive under the Jubilee regime. “When I was the governor of Kakamega County, we established the Lake Region Economic Bloc (LREB), which included Western, Nyanza and parts of the Rift Valley, allowing small and medium enterprises with Kakamega licenses to operate in the 14 counties without paying extra fees. This helped businesses in the bloc to flourish and we plan to encourage similar initiatives so that small and medium enterprises can create wealth and provide jobs,” he said.
Businessman and Chairman of Bidco Africa, Vimal Shah, raised the issue of multiple county taxes, noting that counties levy multiple taxes, sometimes as many as 20 or more, which burdens MSMEs and SMEs without adding value.
The Ministry of Finance also announced plans to hold monthly SME roundtables to discuss ideas for addressing challenges affecting SMEs.
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