Questions As Auditor General Reveals That Sh8 Billion From The Hustler Fund Can’t Be Traced‬

NAIROBI, Kenya June 19– Serious questions are being raised over the whereabouts of Ksh8 billion allocated to the Hustler Fund in the 2022/2023 financial year, with lawmakers demanding accountability from the State Department for Cooperatives.

Appearing before the National Assembly’s Public Accounts Committee (PAC), Principal Secretary for Cooperatives Patrick Kilemi faced tough questions over the unexplained variance in the fund’s utilisation.

According to the Auditor General’s report for the year ending June 2023, only Ksh14 billion of the allocated Ksh22.96 billion was utilised, leaving Ksh8.2 billion unaccounted for.

The Hustler Fund, a flagship programme of President William Ruto’s administration, was launched to support youth and small-scale entrepreneurs.

However, its implementation is now under scrutiny due to the significant under-absorption of funds.

PS Kilemi told the committee that only Ksh12 billion had been requested and disbursed from the National Treasury, and that no formal request was made for the remaining Ksh8 billion.

“The department initiated the transfer of Ksh12 billion, which was processed. However, no further request was made for the remaining Ksh8 billion, hence the underutilisation,” he said.

PAC Chair and Butere MP Tindi Mwale criticised the PS for dereliction of duty, noting that as the accounting officer, he was responsible for ensuring full utilisation of budgeted funds.

“You cannot shift blame to officers beneath you. The Principal Secretary is legally mandated to initiate funding requests to the Treasury. Failing to account for Ksh8 billion raises serious questions about transparency and leadership,” Mwale said.

Aldai MP Maryanne Kitany rejected Kilemi’s claim that his role was limited to facilitating transactions on behalf of Treasury and MSMEs, saying such a defence undermines public trust.

“If you were the custodian of the vote for this fund, it was your responsibility to see it through—regardless of whether the department was fully operational. This was a flagship project. Allowing Sh8 billion to lapse undermines government policy and public confidence,” she said.

“You can’t simply call yourself a vehicle. Treasury doesn’t need intermediaries. You knew the importance of this fund and should have acted with urgency,” she added.

Funyula MP Wilberforce Oundo questioned whether any official directive had authorised the shifting of funds from the Cooperatives Department to the State Department for Micro, Small and Medium Enterprises (MSMEs).

“At what point was an executive order issued to shift these funds from Cooperatives to MSMEs? Was this even done legally?” he posed.

In his defence, Kilemi cited administrative delays, explaining that the MSMEs State Department was still being operationalised when the Hustler Fund was launched, and that the Cooperatives docket acted as a temporary host.

But MPs remained unconvinced, accusing the PS of failing to take timely action despite being aware of the fund’s significance.

“You knew this fund mattered to millions of Kenyans. Claiming bureaucratic hurdles now is not only irresponsible—it is dangerous. If you can’t give a better answer, then someone else should,” said Kitany.