Flagship government projects under President William Ruto’s Bottom-Up Economic Transformation Agenda (BETA) are on the brink of collapse following drastic budget cuts, two senior government officials have revealed.
Appearing before the National Assembly’s Trade, Industry and Cooperatives Committee, Principal Secretaries Susan Mang’eni (MSMEs Development) and Patrick Kilemi (Cooperatives) issued dire warnings over funding shortfalls that threaten to stall critical initiatives.
Mang’eni sounded the alarm over the Financial Inclusion Fund—popularly known as the Hustler Fund—noting it had received a fraction of its required budget.
“The Hustler Fund needs Sh5 billion to function optimally, but only Sh1 billion has been allocated. We are requesting full reinstatement to meet the growing demand, especially among the youth,” she told MPs.
But her plea was met with a grilling from lawmakers, who questioned the fund’s performance and the government’s ability to recover already disbursed loans.
“Kenyans are facing immense challenges, including poor infrastructure. Why should we allocate billions for loans that aren’t being repaid?” posed Committee Chair Hon. Benard Shinali (Ikolomani).
“You’re asking for more money, yet you can’t recover what you’ve already given out?” added Vice Chair Hon. Marianne Kitany (Aldai), demanding accountability.
Mang’eni admitted that defaults were an issue but assured the Committee that new loan recovery strategies were being rolled out. She also highlighted increased registrations, especially among newly eligible 18-year-olds, as proof of the fund’s growing popularity and reach.
Meanwhile, PS Patrick Kilemi raised concerns over massive funding cuts to cooperative-driven BETA initiatives aimed at transforming ten key value chains.
“Our budget for BETA value chains has been slashed by 60 percent. This will significantly undermine our ability to mobilize farmers and producers into cooperatives,” he said.
The affected sectors include Coffee, Leather, Dairy, Tea, Rice, Edible Oils, Garments and Textiles, Construction Materials, Artisanal Mining, and Artisanal Fishing.
With Parliament holding the purse strings, the fate of BETA’s ambitious promises now hangs in the balance.
Flagship government projects under the Bottom-Up Economic Transformation Agenda (BETA) face major disruption due to budget cuts, two Principal Secretaries have warned.
Susan Mang’eni (MSMEs Development) and Patrick Kilemi (Cooperatives) raised the concern while appearing before the National Assembly’s Trade, Industry and Cooperatives Committee that is chaired by Hon. Benard Shinali (Ikolomani).
The two officials who separately presented their respective 2025/2026 estimates of revenue and expenditure and warned that key BETA initiatives may stall if the funding gap is not addressed.
Ms. Mang’eni said the Financial Inclusion Fund, widely known as the Hustler Fund, was among the underfunded priority areas.
“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 said.
Her request for additional funding for the kitty drew sharp reactions from lawmakers led by Hon Shinali and Committee Vice Chairperson Hon. Marianne Kitany (Aldai).
They put the PS on the spot regarding the performance of the fund and the loan recovery efforts.
"Kenyans have alot of challenges that require government attention including in infrastructure, why should billions of shillings be allocated to be loaned out?" posed the Chairperson.
“You want more money to lend to Kenyans, yet you can’t recover what was already disbursed?” asked Hon Kitany.
Ms. Mang’eni admitted that a substantial number of borrowers had defaulted. However, she assured the Committee that new measures had been adopted to boost recovery.
She also noted that more young Kenyans were registering for the fund upon turning 18, citing its growing impact across the country.
Mr. Kilemi said his State Department plays a key role in implementing the BETA agenda by mobilizing farmers and producers into cooperatives across ten value chains.
He warned that severe budget cuts had affected their targets.
“There is a 60 percent reduction in funding for BETA value chains. This will significantly undermine our efforts,” he said.
The affected value chains include Coffee, Leather, Dairy, Tea, Rice, Edible Oils, and Garments and Textiles. Others are Construction Materials, Artisanal Mining, and Artisanal Fishing.
