Nairobi – Kenyan lawmakers are demanding a full explanation from the government after Ksh8.2 billion meant for the Hustler Fund was not utilized in the 2022/2023 financial year.
The fund, a key program launched under President William Ruto’s administration to support youth and small-scale entrepreneurs, received an allocation of Ksh22.96 billion. However, only Ksh14 billion was used, leaving a glaring shortfall.
The National Assembly’s Public Accounts Committee (PAC) summoned Principal Secretary for Cooperatives Patrick Kilemi on Tuesday. He faced sharp questions over the failure to account for the remaining amount.
According to the Auditor General’s report for the financial year ending June 2023, the balance of Ksh8.2 billion remained untouched. The report raised red flags about possible mismanagement or inaction from the Cooperatives Department.
Kilemi told the committee the department only requested and received Ksh12 billion from the National Treasury.
“The department initiated a transfer of Ksh12 billion, which was processed. There was no additional request for the rest of the funds,” he said.
But lawmakers on the oversight committee challenged his explanation.
PAC Chair and Butere MP Tindi Mwale dismissed the PS’s response, insisting he had a duty to ensure the full budget was used appropriately.
“You are the accounting officer. You cannot deflect responsibility to your juniors,” Mwale said. “Failing to pursue Ksh8 billion raises serious concerns about transparency and leadership.”
Aldai MP Maryanne Kitany rejected the claim that Kilemi’s role was merely procedural.
“If you were the custodian of this vote, it was your responsibility to act,” Kitany said. “Allowing Ksh8 billion to lapse is not a technicality—it’s a failure in oversight and execution.”
She added, “You can’t just say you were a vehicle. You knew the importance of this fund. You should have done more.”
The committee also questioned how and when the management of the Hustler Fund shifted from the Cooperatives Department to the State Department for Micro, Small and Medium Enterprises (MSMEs). Funyula MP Wilberforce Oundo asked whether any legal or executive order had authorized the transfer.
“At what point was this decision made? Was it documented? Was it lawful?” Oundo asked.
In response, Kilemi pointed to delays in setting up the MSMEs department, saying the Cooperatives docket temporarily managed the fund during its early stages.
But that argument failed to convince the MPs, who said the delay did not excuse the failure to secure the full budgeted amount.
“This fund was meant to change lives. Bureaucratic excuses won’t cut it,” Kitany said. “If you can’t justify this shortfall, someone else should be answering these questions.”
The committee is expected to continue investigating the issue. Lawmakers say they will push for clarity on how the fund was managed and whether public funds were safeguarded.
The Hustler Fund was launched with the promise of lifting millions of Kenyans out of poverty through accessible credit. Its execution now faces renewed scrutiny over unclaimed money and weak oversight.
