The Committee on Trade, Industry and Investment has urged the State Department for Micro, Small and Medium Enterprises (MSME) Development to intensify financial literacy programmes before disbursing additional funds under various empowerment initiatives.
Members argued that targeted financial education would equip beneficiaries to manage loans and grants more effectively, improving sustainability and reducing dependence on government support.
The concerns arose during a session to consider the FY 2026/27 Annual Estimates of Revenue and Expenditure, chaired by Hon. Bernard Shinali (MP Ikolomani).
The committee reviewed allocations for key empowerment programmes, including the NYOTA Programme and the Financial Inclusion Fund — commonly known as the Hustler Fund.
The State Department reported that the NYOTA Programme has disbursed KSh2.28 billion in start-up capital, making it the country’s largest direct youth-enterprise capitalisation initiative. The Hustler Fund, meanwhile, has disbursed KSh14.4 billion since inception, reaching millions of Kenyans seeking affordable credit.
Officials appealed for an additional KSh11.3 billion to scale up the NYOTA Programme and onboard an estimated 121,800 new beneficiaries. A further KSh5 billion was requested for the Hustler Fund to address liquidity constraints affecting clients unable to access borrowing facilities, particularly under the bridge loan product.
The Principal Secretary also noted that the Hustler Fund requires enhanced institutional support to maintain liquidity, expand credit access, and facilitate beneficiaries’ transition into the formal financial sector.
Committee members, however, raised concerns over the fund’s long-term sustainability. Legislators argued that the Hustler Fund was conceived as a revolving fund anchored on Exchequer seed capital, and that recurring budget allocations risk undermining its intended self-sustaining model.
