Sensitization, training and capacity building needed for absorption of hustler fund

The Hustler fund has finally been operationalization after the gazettement of the regulations, legislative supplement no. 91 of 2022, under the Public Finance Management Act, PFM Act of 2012. The major aim of the fund is to address financial inclusion of the people at the bottom of the pyramid, who are unable to get meaningful engagement and employment opportunities. The Household survey by CBK, FSD and Kenya National Bureau of Statistics (KNBS) that shows that some 23.3% of Kenyans rely on agriculture as a source of their livelihoods and 13.5 % have opted to be self -employed because of the high un-employment rate in the country and globally. In addition, the report shows that 28.5% are casually employed in the country and the report notes that casualization will increase in the coming days with industrialization, specialization and shifts in use of modern technologies. The hardest group of people by un-employment is the youths compared to other age groups, and whose lives stakeholders should try to salvage by ensuring that they are meaningfully employed and engaged.  

One way is to make agriculture and attractive to all through technical assistance, financing, marketing and infrastructural development. To address the un-employment and casual employment in that matter, there is need to promote youth entrepreneurship in the country through the financial inclusion/hustler funds. This is because youth entrepreneurship in Kenya plays a significant role in enhancing Kenya’s economic development and in reducing youth unemployment. In order to effectively utilize the proposed hustler funds and realize value for money, there is need for reforms in the credit management, operationalization of clear lending conditions, promotion of adequate sensitization and training on entrepreneurial skills and financial literacy to the recipients. These activities will enhance the youth entrepreneurial skills by polishing their business skills, improving their strategic thinking and incorporating networking into small business activities. Financial literacy helps entrepreneurs to possess set of skills and knowledge that allows them to make informed and effective financial decisions. Financial literacy should be part of the hustler funds dissemination criteria so that beneficiaries will be equipped with knowledge in financial matters and be able to make wise financial decisions and investments such that they can comfortably repay the loans. Beneficiaries should be equipped with money management knowledge and skills, personal finance and effective financial habits