The Ministry of Cooperatives has rejected claims that the Financial Inclusion Fund, also known as the Hustler Fund, was disbursed to unborn children and minors.
Speaking before the National Assembly Departmental Committee on Trade on Thursday, March 6, Cooperatives Principal Secretary Susan Mang’eni clarified that the discrepancies were due to errors in data extraction, not misallocation of funds.
She explained that the issues arose from the audit report, which was not conducted in a live environment.
Mang’eni assured the committee that the records have been updated and all sampled individuals now have verified identity cards and phone numbers.
“The data used in the audit report contained significant extraction errors,” Mang’eni explained. “The audit was not conducted in a live environment.”
She further emphasized that the Hustler Fund’s system does not allow minors to access loans and reiterated the government’s commitment to transparency and accountability in managing the fund.
Mang’eni also noted that the Hustler Fund is designed to support small businesses and individual entrepreneurs, with safeguards in place to ensure the funds reach the intended beneficiaries.
“The Hustler Fund remains a critical tool in driving financial inclusion and economic empowerment,” she added.
This clarification follows a report from Auditor General Nancy Gathungu, who revealed that sh31.8 million was mistakenly disbursed to 44,167 underage and unborn recipients.
Gathungu’s audit found that 1,186 children aged between 10 days and 17 years received sh681,395 from the fund, while 42,981 individuals with future birth dates received sh31,135,690.
“A review of the customer and opted-in datasets revealed that some customers were below the mandatory age of 18, while others had birth dates set in the future, beyond June 30, 2024,” Gathungu noted.
“In these cases, loan agreements with underage individuals are potentially unenforceable and could increase the risk of defaults,” she added.
Kenyan Woman Sentenced To Death For Trafficking Cocaine In Vietnam
