CS Oparanya grilled by Senate on Women Empowerment, Hustler Fund and SACCO deposit guarantee delays

Parliament Buildings
Wednesday, 14th May 2025

The Senate this Wednesday interrogated the Cabinet Secretary for Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development, Wycliffe Oparanya, over policies and programmes under his docket. Lawmakers sought answers on key issues affecting Women, Youth and SACCO members across the country.

Appearing before the Senate plenary, Oparanya faced questions particularly from nominated Senators Joyce Korir and Karen Nyamu who demanded clarity on the Ministry's empowerment strategies, fund disbursement mechanisms and legislative reforms.

Senators demand concrete empowerment frameworks

Senator Joyce Korir, in her questions, asked the Cabinet Secretary to enumerate the interventions the Ministry has implemented to promote the inclusion and empowerment of women in rural and marginalized areas.

“Can the Cabinet Secretary outline interventions the Ministry has put in place to promote inclusion and empowerment of women in rural and marginalized areas, including specific support to vulnerable and disadvantaged groups, and strategies for monitoring and evaluation?” demanded Sen. Korir.

Oparanya responded by outlining several government programmes, citing the Uwezo Fund, Hustler Fund and various capacity building efforts spearheaded through affiliated state agencies.

"The Hustler Fund is one of the key flagship programmes through which women in MSMEs benefit. It has so far disbursed Kshs. 70.09 billion to 25.65 million Kenyans, of whom 48 percent are women," he said, adding that 19 million Kenyans had borrowed more than once.

He further noted that the Fund’s design promotes financial inclusion by eliminating collateral requirements and bypassing traditional credit checks. 

Oparanya emphasised that women were also supported through the Uwezo Fund, which had disbursed over Kshs. 5.3 billion to 53,583 women’s groups by February 2024.

Sen. Korir also sought to know the mechanisms in place to ensure that rural women benefit, as well as the involvement of county governments and grassroots organizations in the outreach.

In response, Oparanya said the Ministry was working closely with elected leaders, National Government Administrative Officers (NGAOs) and Women Representatives. He pointed to sensitisation forums already conducted in counties such as Marsabit, Kakamega, Murang'a, and West Pokot.

“We also plan to take the 'MSMEs Connect' forum to all counties starting June, beginning with Embu County, in collaboration with the Council of Governors,” he added.

Action on delayed SACCO Deposit Guarantee Fund

Senator Karen Nyamu raised concerns over the delayed operationalization of the SACCO Deposit Guarantee Fund a statutory safety net meant to cushion SACCO members against potential loss of deposits.

Oparanya admitted that implementation had been delayed due to legal and institutional gaps.

“Key issues include the absence of a trustee protection framework and a legal provision allowing the Fund to accumulate reserves before making payouts,” he explained. “However, the Cabinet has approved the SACCO Societies (Amendment) Bill, 2024, which will address these gaps.”

He added that once enacted, the law would pave the way for the Fund’s activation, noting that regulations had already been drafted and were pending parliamentary approval.

Senate seeks clarity on non-remitted SACCO deductions

Senator Nyamu also questioned the Ministry on the persistent problem of non-remittance of SACCO deductions by employers.

“What measures are being implemented to ensure the timely remittance of members' contributions to Savings and Credit Co-operative Societies (SACCOs), especially in light of persistent financial mismanagement that, according to the Government, has resulted in Kshs. 600 million in unpaid SACCO deductions from county governments and universities?” posed Sen. Nyamu.

The CS revealed that, as of March 2024, over Kshs. 4.4 billion had not been remitted to SACCOs by various public institutions, including County Governments and Universities.

“To mitigate the situation, the SACCO Societies Regulatory Authority (SASRA) is working with the Kenya Revenue Authority (KRA) to issue agency notices and recover funds directly,” he said. “We are also collaborating with the Council of Governors to resolve the issue administratively.”

On the methodology used to determine the credit score of Hustler Fund beneficiaries and how they are made aware of their credit status, the CS noted that ratings were based on repayment behaviour, with those consistently repaying on time being upgraded and rewarded with increased limits.

“For instance, borrowers rated A1 can borrow more and are eligible for financial literacy training and linkage to formal financial institutions,” he revealed.

Senator Korir further asked how the Ministry ensures that the needs of rural women are reflected in national policy.

“What steps has the Ministry taken to raise awareness among marginalized and underprivileged women, particularly those in remote areas, on the availability of funding support for women entrepreneurs?” asked Sen. Korir.

Oparanya said the Ministry conducts quarterly evaluations and collaborates with county governments through performance-based grant mechanisms.

“We are leveraging data collected by NGAOs and working with local leaders to tailor interventions,” he said. Senators insisted that more institutionalised engagement was needed.

Senators push for greater accountability

During the supplementary questions session, Senators called on the CS to ensure that grants and funds intended to empower Kenyans especially Youth and Women are adequately promoted to increase uptake.

They also demanded a clear way forward on dealing with Hustler Fund loan defaulters.

“Can the Cabinet Secretary confirm any plans that are in place to ensure people listed as defaulters, who amount to 58 percent pay back the money acquired through Hustler Fund?” asked Senator Edwin Sifuna (Nairobi).

Lawmakers also sought to know the approximate number of Kenyans borrowing from the Hustler Fund in order to assess the programme’s national impact.

In addition, they urged the Ministry to table a legal impact assessment of the Hustler Fund, arguing that there are numerous unresolved gaps including the lack of a comprehensive record of beneficiaries and the actual empowerment impact at the grassroots. They questioned whether the real Kenyans targeted by the Hustler Fund were indeed the ones benefiting.

Responding to the Senate’s concerns, CS Oparanya assured the House that the Hustler Fund was working well and benefiting many Kenyans, while appealing to borrowers to repay their loans.

“Kenyans who borrowed the money should pay. This Fund is a good initiative that has and will help many Kenyans. We had so many defaulters when the Fund started, but we are working on a system that will ensure the money is recovered to benefit more Kenyans,” submitted CS Oparanya.

He revealed that out of 20 million borrowers, 2 million had proven to be good borrowers and had since been awarded training and increased borrowing limits.

On the issue of records, the CS told the Senate that the Fund is run digitally, making it easier to generate data. He promised to submit comprehensive records to the House in due course. Additionally, he requested Speaker Amason Kingi to organize an informal sitting with Senators, where he pledged to further expound on the Hustler Fund.