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Stakeholders in the co-operative movement have hailed  President  William Ruto for creating a dedicated Ministry of Co-operatives, saying the movement is best suited to handle the “hustler fund”.

The sector which was denied a ministry in the last government despite its huge impact on the economy got a full ministry that was also in charge of small and micro enterprises.

Players in the sector say that the structure of savings and co-operative credit societies (Saccos) meets the key requirements to successfully handle the hustlers fund in terms of financial access, traceability, inclusivity, affordability and overall sustainability of the Fund.

Mobile lenders

The president has been pushing for cheaper credit to micro, small and medium enterprises (MSMEs) even hinting at channelling the Sh50 billion Hustlers Fund via Fuliza and other regulated mobile lenders.

Speaking on the sidelines of the Nairobi Securities Exchange (NSE) Market Place launch, Co-op Bank Group Managing Director and CEO Gideon Muriuki challenged the government to utilise the over 13 million members in more than 22,000 co-operative societies and Saccos, adding that the networks can be very effectively distribute the fund.

Muriuki said the model of Saccos can handle the hustler fund in terms of traceability, inclusivity, affordability and overall sustainability of the fund and appealed to member movements to take advantage of incentives given by the government to participate in the lucrative capital market place.

“Saccos’s now have over 550 Front Office Services Activities (FOSA) outlets with incredible impact in the social and economic development of millions of Kenyans at the bottom of the pyramid,” he said.

The Sh50 billion annual kitty will be channeled towards supporting micro, small and medium enterprises. Ruto had in his campaigns promised a new economic order that would address unemployment and lack of opportunities for youth, pledging to pump billions of shillings in support of sectors such as the boda bodas and small retailers.

Muriuki also thanked the president for creating a dedicated Ministry of Co-operatives and MSMEs under the Cabinet Secretary-nominee Simon Chelugui.

“We are all set for the key challenges you have set us to further deepen that sector,” he said.