Nairobi — President William Ruto has dismissed critics of the Hustler Fund, saying the initiative has transformed lives of millions of Kenyans.
Speaking during a Presidential Roundtable with the Private Sector at a Nairobi hotel, on Wednesday, the President pointed out that, in just under three years, the fund has disbursed over Sh72 billion to 26 million Kenyans.
Additionally, he said the Hustler Fund has mobilised more than Sh5 billion in savings, and provided necessary working capital to millions of entrepreneurs, proof that even the smallest of businesses can thrive with the right support.
"Our critics - the naysayers, the perpetual pessimists, the chorus that never sees anything working in Kenya - would have you believe that the Hustler Fund is a total failure," he said.
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He added: "They say this because they either do not understand or refuse to acknowledge the daily realities of the millions of Kenyans this fund was designed to empower."
To them, the President pointed out, a micro-loan of Sh1,000 is too small to matter.
"But that is only because they have never walked in the shoes of those who were left at the margins of our society for far too long," he said.
President Ruto said such critics have never experienced the despair of being locked out of the financial system, having no credit history, no collateral, and no chance at life.
He regretted that critics are spreading fear and despondency by falsely claiming that the fund has a 60 per cent default rate.
"That is a deliberate distortion of facts. The truth - backed by data - is that the Hustler Fund has a recovery rate of 83.3 per cent nearly identical to that of the formal banking sector, whose repayment rate is 83.6 per cent," the President explained.
He went on: "What exactly are they saying? That ordinary, hardworking Kenyans - mama mboga, boda boda riders and Jua Kali artisans - are serial defaulters? Kenyans are better than that."
The President pointed out that the Hustler Fund has enabled 26 million Kenyans with good credit rating history to access bank loans without strict regulations.
"The problem in this country is that some people, who are beneficiaries of NGO funds and talk from posh hotels, do not know that even Sh500 to someone in the village is of great value," the President said.
He explained: "It's only such people who cannot understand the hustles of small-scale traders."
He said the government will not be distracted by "merchants of doom and negativity" who, when facts do not serve their agenda, resort to fabricating narratives to prop up their falsehoods.
"We remain unfazed in building a new, inclusive, fair and equitable society, and I count on the private sector, an essential ally and collaborator, in this quest," he pointed out.
At the same time, President Ruto commended the private sector for a facilitative role in delivering public goods and services.
"One example is the Affordable Housing Programme, a flagship initiative that is transforming lives and reshaping our urban landscape. It has already created more than 320,000 jobs across the building and construction value chain," he said.
By localising supply chains, the President noted that the government and the private sector are expanding opportunities for many Kenyans and businesses.
"We have ringfenced Sh11 billion for the Jua Kali sector to manufacture key housing components - from doors, windows and hinges to fittings - stimulating grassroots enterprise, strengthening livelihoods, and anchoring economic growth in the communities that need it most," he said.
He noted that the private sector equally anchors core value chains, including agriculture, which employs over 40 per cent of Kenyans. He also said the private sector is doing equally well in ICT, financial services and tourism.
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Investment and Teade Cabinet Secretary Lee Kinyanjui said collaboration between the private sector and government was key to increased interest in Kenya as an investment destination.
Mr Kinyanjui urged the private sector to exploit existing business opportunities in the region and the rest of Africa.
"I want to assure the business community that the challenges we are facing in the East African Community (EAC) are being addressed diplomatically," he said.
Kenya Private Sector Alliance (KEPSA) CEO Carole Kariuki commended the government for the commitment to ensure a business friendly environment in the country.
Cabinet Secretaries Davis Chirchir (Roads and Transport) and Rebecca Miano (Tourism), among other officials, also spoke at the meeting.
