Budget Cuts Threaten Key Bottom-Up Economic Projects, PSs Warn
Ms. Mang’eni singled out the Financial Inclusion Fund, popularly known as the Hustler Fund, as among the most underfunded initiatives.
Principal Secretaries warn that critical Bottom-Up Economic Transformation Agenda (BETA) projects face disruption due to severe 2025/2026 budget cuts. Photo/Parliament of Kenya.
By Robert Assad
Flagship projects under the government’s Bottom-Up Economic Transformation Agenda (BETA) risk stalling due to severe budget cuts, two Principal Secretaries have cautioned.
Appearing before the National Assembly’s Trade, Industry and Cooperatives Committee, Principal Secretaries Susan Mang’eni (MSMEs Development) and Patrick Kilemi (Cooperatives) raised alarms over inadequate allocations for the 2025/2026 financial year, warning that critical components of the BETA agenda could be derailed if the funding shortfall is not addressed.
Ms. Mang’eni singled out the Financial Inclusion Fund, popularly known as the Hustler Fund, as among the most underfunded initiatives.
She revealed that although the fund requires KSh 5 billion, only KSh 1 billion had been allocated.
“The Hustler Fund requires Sh5 billion but was only allocated Sh1 billion. We request full reinstatement to meet the growing demand for financial products,” she told the committee.
Her call for increased funding was met with skepticism by lawmakers. Committee Chairperson Hon. Benard Shinali (Ikolomani) questioned the rationale of pumping billions into loan programs when other pressing national needs, such as infrastructure, remained underfunded.
“Kenyans have a lot of challenges that require government attention including infrastructure. Why should billions of shillings be allocated to be loaned out?” asked Hon. Shinali.
Committee Vice Chairperson Hon. Marianne Kitany (Aldai) also questioned the performance of the Hustler Fund and the effectiveness of loan recovery strategies. “You want more money to lend to Kenyans, yet you can’t recover what was already disbursed?” she posed.
Ms. Mang’eni acknowledged that a significant portion of borrowers had defaulted on their loans but assured the committee that new measures had been adopted to enhance recovery.
She also highlighted the fund’s continued popularity, particularly among young people turning 18, who are registering in large numbers to access the facility.
Meanwhile, PS Kilemi said his State Department, which leads efforts to mobilize farmers and producers into cooperatives under BETA, had also been hit hard by funding cuts.
“There is a 60 percent reduction in funding for BETA value chains. This will significantly undermine our efforts,” he warned.
Kilemi noted that the budget cuts jeopardize programs across ten key value chains: Coffee, Leather, Dairy, Tea, Rice, Edible Oils, Garments and Textiles, Construction Materials, Artisanal Mining, and Artisanal Fishing.
The Principal Secretaries urged lawmakers to consider reinstating the funds, warning that continued underfunding could stall the very transformation BETA was designed to achieve.
About Author
