I'm coming for you, Oparanya tells Hustler Fund defaulters

Cooperatives and Micro, Small and Medium Enterprises Cabinet Secretary Wycliffe Oparanya speaking during the Kenya Private Sector Alliance's Inaugural Annual SME Conference, Awards, and Exhibition. [James Wanzala,Standard]

Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya has warned defaulters of the Hustler Fund that they will soon be traced to account for the loans they took.

Speaking at the official launch of the Kenya Private Sector Alliance's Inaugural Annual SME Conference, Awards, and Exhibition, themed "Unlocking SME Financing and Scaling Up Innovation for Accelerated Growth," Oparanya emphasized that defaulters will soon have nowhere to hide.

He noted that the government has introduced initiatives such as the Uwezo Fund, Youth Fund, and Women Fund under constituency, youth, and women ministries. The government is considering merging these initiatives with the Hustler Fund.

"The Hustler Fund was a very innovative digital initiative. However, in the first round, 21 million people borrowed money, but 19 million of them defaulted, leaving only 2 million borrowers who continue to borrow regularly. We plan to recognize and reward those who are good borrowers. There is already one individual who has borrowed up to Sh2 million and is running a successful business," said Oparanya.

He emphasized that these funds are public money that should be borrowed and repaid to allow others to benefit. "To the 19 million defaulters, I am coming for you to ensure that you repay so others can benefit, and even you can benefit. If you borrow and don't repay, you won't be able to borrow again. I want you to borrow repeatedly to help you develop yourselves," he added.

The CS mentioned that the government will soon implement a system to track defaulters, ensuring they are pursued to repay the loans for the benefit of others.

Oparanya also stated that the government will create an enabling environment for SMEs to do business and create employment opportunities. SMEs in Kenya employ 15 million people, compared to the government's 1 million employees, making SMEs the largest employer in the country, providing jobs to over 80 per cent of the working population.

During the event, the MSME Financing Gateway, operated by KEPSA to help finance businesses, was also launched. Oparanya expressed his intention to address the issue of multiple taxes imposed by counties, which are harming SMEs and MSMEs. These enterprises are the backbone of the economy, contributing significantly to employment generation, innovation, and GDP growth.

The CS highlighted the crucial role SMEs play in driving inclusive and sustainable economic development in Kenya while creating positive social change.

He also hinted at reviving the six regional economic blocs that became inactive under the Jubilee regime. "When I was Governor of Kakamega County, we established the Lake Region Economic Bloc (LREB), which included Western, Nyanza, and parts of Rift Valley, allowing SMEs with licenses from Kakamega to trade in 14 counties without paying additional fees. This helped businesses thrive in that bloc, and we plan to encourage similar initiatives so that SMEs can create wealth and offer employment," he said.

The issue of multiple county taxes was raised by businessman and Bidco Africa chairman Vimal Shah, who pointed out that counties impose numerous taxes, sometimes 20 or more, which burden MSMEs and SMEs without adding value.

The CS also announced plans to launch a monthly SME roundtable to discuss ideas on tackling challenges affecting SMEs.