President William Ruto's administration plans to disburse Hustler Fund through Saccos.
In the just-released draft of 2023 Budget Policy Statement (BPS), the government plans to leverage Kenya’s well-advanced Sacco system to develop a tier-three financial system.
"The Sacco system will be used to develop a tier three financial system that will facilitate disbursement of affordable credit through the Hustler Fund to cushion those affected by the current predatory lending interest rates e.g. market traders, bodaboda," the statement reads.
The administration also plans to implement the MSMEs Credit Guarantee Scheme (CGS) to promote enterprise development through access to quality and affordable credit.
"The intervention will develop and deploy a robust financial services consumer protection policy and legal framework that will protect Kenyans from predatory lenders."
The agenda is geared towards an economic turnaround and inclusive growth.
"It will also aim at increasing investments in at least five sectors envisaged to have the largest impact and linkages to the economy as well as on household welfare," the statement further reads.
For the proposal to go into effect, the draft 2023 BPS will be taken to Parliament by February 15, as stated by the law.
"Parliament shall, not later than 14 days after the BPS is submitted, table and discuss a report containing its recommendations and pass a resolution to adopt it with or without amendments."
Afterward, National Treasury and Economic Planning CS Simon Chelugui shall take into account resolutions passed by Parliament in finalising the budget for the FY 2023-24 and the medium term.
