The government has issued a response to the auditor general's report showing that KSh 8 billion allocated for the Hustler Fund is unaccounted for.

Principal Secretary (PS) State Department for Micro, Small and Medium Enterprises Development, Susan Mang'eni, said the initial capitalisation of the Fund stood at KSh 20.2 billion for the year ending June 30, 2023.

Mang'eni broke down the allocation to KSh 12 billion for lending and KSh 8 billion for counterpart funding to match the long-term (pension) savings for the Hustler Fund beneficiaries and KSh 200 million to support the operationalisation of the Fund.

The PS explained that the funds were not drawn from the exchequer since their intended purpose was not in place.

"Contrary to reports appearing in some media, the KSh 8 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.

"By 30th June 2023, the period under audit review, the Fund was 7 months old, and the matching savings product was still being developed. It would have been imprudent for the Fund to draw down the money only to idle in the commercial banks," said Mang'eni.

Mang'eni said the development of the savings product was finalised and the first matching undertaken during the 1st Anniversary of the Fund on 30th November 2023.

More to follow...

Source: TUKO.co.ke