President William Ruto yesterday set up a Sh13.5 billion enterprise fund for women in fulfillment of his campaign pledges. The kitty will be domiciled in the Hustler Fund to ensure electronic distribution of loans to women.

It is the second product of the Hustler Fund that mainly targets small businesses. Ruto stated that the facility will benefit two million Kenyans engaged in micro-enterprises, that were previously excluded from accessing credit, in a faster and more efficient manner.

It is a bold move that will be a defining pillar in his legacy. It is a well-known fact that, although readily available, the cost of borrowing is very high for most Kenyans. 

That impediment is what creation of the fund is meant to conquer.  The President has been categorical that the funds are part of his administration’s answer to “predatory lending that has in the past denied many households an opportunity to make their rightful contribution to nation building.”

It is also expected to come to the rescue of millions of Kenyans who had been blacklisted by credit rating agencies by according them a second chance to access affordable loans.

There is no doubt that the loan facility is a huge gamble, with serious ramifications on the President’s political career.  Legacies are determined by the success or failure of such ambitious ideas.

For instance, President Daniel arap Moi is credited with expansion of university education while his successor, Mwai Kibaki, won accolades for implementation of free primary schooling and revival of a tattered, national economy.

During his rule, then-President Kibaki inspired a policy framework that liberalised the financial market and enabled millions of Kenyans to access credit from banks to start businesses and buy properties.

Former President Uhuru Kenyatta stakes claim to huge infrastructure developments.  That is why the Hustler Fund will either be a major credit, or undoing, of Ruto’s political career.

If well executed, ambitious projects such as the Women Enterprise Fund have a dramatic ability to transform people’s lives and grow a country’s economy.  Major challenges include implementation and sustainability of such grand ideas. We encourage women to avail themselves to the fund.