The Principal Secretary for Micro, Small & Medium Development Susan Mang’eni has issued a clarification after the auditor general’s report flagged Sh8 billion that could not be accounted for under the Hustler Fund.
Mang’eni noted that the funds in question were not part of the initial Sh12 billion injected into Hustler Fund by the National Treasury.
She said it came from counterpart funding to match the long-term (pension) savings for the Hustler Fund beneficiaries.
“Contrary to reports appearing in some media, the Sh8 billion in question, which had been allocated as counterpart funding to match the long-term savings of the Hustler Fund, was NOT drawn down from the National Treasury,” the PS said in a statement on Thursday.
She also explained that by June 30, 2023, the period under audit review, the fund was 7 months old, and the matching savings product was still being developed.
Mang'eni said Sh200 million was an allocation to support the operationalisation of the fund.
According to the Auditor General’s report for that period, the State Department spent Sh12 billion against an approved budget of Sh22.96 billion, resulting in Sh8.2 billion that the department cannot account for.
Mang’eni’s remarks are in response to queries raised by the National Assembly’s Public Accounts Committee, where Cooperatives, PS Patrick Kilemi, struggled to explain the whereabouts of the funds, deemed missing.
Kilemi admitted that he could not fully account for the missing Sh8 billion, citing transitional challenges within government departments during the early days of the Kenya Kwanza administration.
The PS was given two weeks to provide all documentation explaining the gaps in the Hustler Fund’s expenditure.
Mang’eni in her statement said that the required documents will be availed in two weeks as requested by parliament.
“We note that the Parliamentary Public Accounts Committee has given us two weeks to provide additional information.
“We assure the public that we will provide the requested documentation.”
She assured Kenyans that the Hustler Fund remains committed to its objective and purpose of deepening financial and credit inclusion among the most vulnerable segments of the economy.
