The Principal Secretary for Micro, Small & Medium
Development Susan Mang’eni has issued a clarification after the auditor
general’s report flagged Sh8 billion that could not be accounted for under the
Hustler Fund.
Mang’eni noted that the funds in question were not part of
the initial Sh12 billion injected into Hustler Fund by the National Treasury.
She said it came from counterpart funding to match the
long-term (pension) savings for the Hustler Fund beneficiaries.
“Contrary to reports appearing in some media, the Sh8
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,” the PS said in a statement on Thursday.
She also explained that by June 30, 2023, the period
under audit review, the fund was 7 months old, and the matching savings product
was still being developed.
Mang’eni said Sh200 million was an allocation to support the
operationalisation of the fund.
According to the Auditor General’s report for that period,
the State Department spent Sh12 billion against an approved budget of Sh22.96
billion, resulting in Sh8.2 billion that the department cannot account for.
Mang’eni’s remarks are in response to queries raised by the National
Assembly’s Public Accounts Committee, where Cooperatives, PS Patrick Kilemi,
struggled to explain the whereabouts of the funds, deemed missing.
Kilemi admitted that he could not fully account for the
missing Sh8 billion, citing transitional challenges within government
departments during the early days of the Kenya Kwanza administration.
The PS was given two weeks to provide all documentation
explaining the gaps in the Hustler Fund’s expenditure.
Mang’eni in her statement said that the required documents will
be availed in two weeks as requested by parliament.
“We note that the Parliamentary Public Accounts Committee
has given us two weeks to provide additional information.
“We assure the public that we will provide the requested
documentation.”
She assured Kenyans that the Hustler Fund remains committed
to its objective and purpose of deepening financial and credit inclusion among
the most vulnerable segments of the economy.