Cooperatives Principal Secretary Susan Mang'eni has dismissed allegations that the ministry embezzled Ksh8 billion belonging to the Financial Inclusion Fund, popularly known as the Hustler Fund.
In response to allegations of possible financial misappropriation, Mangeni on Thursday denied assertions made by Nancy Gathungu, the Auditor General, that the Ministry of Cooperatives was unable to account for the funds.
According to Gathungu's report, which was presented to parliament on Tuesday, June 17, the Ministry only spent Ksh12 billion out of a Ksh20.2 billion approved budget, leaving Ksh8.2 billion in the dark.
The Ksh8 billion was set aside to match the savings of the hustler fund beneficiaries, and the Ksh200 million was set aside to support the Fund's operationalisation, the PS explained in response to Gathungu's allegations.
"The initial capitalisation of the Fund was Ksh20.2 billion, with Ksh12 billion allocated towards lending and Ksh8 billion as counterpart funding to match the pension savings for the Hustler Fund beneficiaries," she noted.
"Contrary to reports appearing in some media, the Ksh8 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," Mang'eni added.
To further resolve the controversy, Mang'eni promised to furnish the National Assembly's Public Accounts Committee with all the documents to prove that the money was not misused as alleged.
The PS went ahead to apprise members of the public of the Fund's progress. She stated that the Hustler Fund had immensely impacted the lives of many Kenyans, adding that Ksh71 billion had so far been disbursed to over 26 million people in both personal and group loans.
According to her, the Financial Inclusion Fund was also able to mobilise close to Ksh4.8 billion in savings, both voluntary and mandatory savings.
"Already, over 4.5 million beneficiaries out of the 9 million repeat customers are scoring within A and B grades, demonstrating good creditworthiness," she reiterated.
Additionally, Mang'eni informed Kenyans that repeat customers had the opportunity to establish a banking relationship and gain banking experience, facilitating their integration into mainstream financial institutions for enhanced access to credit for business financing.
"We want to assure Kenyans that the Fund remains committed to its objective and purpose of deepening financial and credit inclusion among the most vulnerable segments of the economy," the PS pledged.
