 Over three million Small and Medium enterprises are expected to access the Hustler fund through Saccos and other selected financial institutions beginning in February this year.
The second face of Hustle Fund will target groups, Chamas and Co-operatives and will be channelled through Saccos, MFIs and Banks.
The Micro Loans range will be Ksh 100,000-2,500,000, targeting over 3,000,000 enterprises. Hustle fund has four products, namely Personal Loans, Micro business, SMEs and Start-up Loans targeting various segments of the population.
The start-up bill is undergoing discussion with various stakeholders.
The regulations will then be published and tabled before parliament. This will underwrite start-up risks and onboard venture capitalists, angel investors and business incubation.
The government announced plans to channel the fund through Saccos to facilitate sustainability and compliance with regulations set for the revolving kitty.
Co-operatives and MSME development Cabinet Secretary Simon Chelugui said the Saccos are expected to play a critical role in mobilizing Kenyans to embrace a saving culture and act as an intermediate in accelerating financial inclusion and empowerment to the millions of creditors left out of mainstream financial lenders.
The new regime has identified the co-operative movement as a vehicle for economic growth under the bottom–up model. Saccos will be fully involved in SME lending.
 “We will have service level agreement with Saccos and other financial institutions to ensure the fund has an impact at the bottom of the pyramid,” said CS.
He stated that Saccos are anticipated to play a significant role in encouraging Kenyans to adopt a saving culture and serve as an intermediary in accelerating financial inclusion and empowerment for the millions of creditors excluded from traditional financial lenders.
The CS said that the co-operative movement had been elevated to boost economic growth.
Access to credit facilities is the new administration’s key economic policy initiative.
“We want to ensure Kenyans at the bottom of the pyramid access credit facilities that are affordable and timely,” he said. “We aim to enhance a saving culture while building momentum for sustainable development.”
Mr Chelugui pointed out that the Central Liquidity Facility (CLF), Shared Services Platform, and Deposit Guarantee Fund (DGF) are additional policy initiatives that his ministry will execute soon.
