PS Kilemi on spot as MPs Probe Unaccounted Ksh8 Billion Hustler Fund Allocation » Capital News

NAIROBI, Kenya Jun 19 – Questions are mounting over the whereabouts of Ksh8 billion allocated to the Hustler Fund in the 2022/2023 financial year, with lawmakers demanding answers from the State Department for Cooperatives.

Appearing before the National Assembly’s Public Accounts Committee (PAC), Principal Secretary for Cooperatives Patrick Kilemi faced intense scrutiny over the unexplained variance in the fund’s budget utilization.

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

The Hustler Fund, a key initiative of President William Ruto’s administration, was established to support youth and small-scale entrepreneurs across the country. However, its implementation now faces credibility issues over significant under-absorption of funds.

PS Kilemi admitted that only Ksh12 billion had been requested and disbursed from Treasury, leaving a balance of Ksh8 billion untouched simply because no formal request for its release was submitted.

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

PAC Chairman Tindi Mwale accused the PS of dereliction of duty, saying it was his responsibility as the accounting officer to ensure all allocated funds were properly requested and spent.

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

Aldai MP Maryanne Kitany  dismissed the PS’s claim that his role was only to facilitate transactions on behalf of Treasury and MSMEs, warning that such justifications could set a dangerous precedent.

“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 or not.This was a flagship project. Allowing Sh8 billion to lapse undermines both 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 you should have acted with urgency,” Kitany added.

Funyula MP Wilberforce Oundo questioned whether due process was followed in transferring the funds, further challenging whether any official directive had been issued to reallocate funds from the State Department of Cooperatives to the one handling 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 asked.

While Kilemi maintained that administrative transitions at the time slowed down the fund’s rollout, MPs were unconvinced. He explained that the MSMEs State Department was still being operationalized when the Hustler Fund launched, forcing the Cooperatives docket to act as a temporary host.

However, lawmakers insisted that the lack of action on the Ksh8 billion despite being aware of the fund’s significance was an unacceptable oversight.

“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,”stated Kitany.