President William Ruto
Your expertise matters less when the policy framework is flawed. We are told that 24.6 million people have borrowed from the Hustler fund. And the total amount borrowed is 60 billion. This is an average KSh. 2,439 per borrower. What did the borrowers use the money for? Can this amount boost a business?
What was meant to be an empowerment fund has ended up being an “okoa jahazi”. Ideally, this hustler narrative should be axed from policy piles and funds used to revamp the collapsed education and other sectors.
The funding gap in the education sector is half to three-quarters of hustler funds.
As if that was not enough, we are introducing another fund to support youth enterprises! A duplication of the failed Hustler Fund, youth, and women enterprise funds.
Our policy for youth, women, and SME empowerment has been a gamble without anchor data and evidence.
The other mirage is the affordable housing. The projects notwithstanding, cement consumption went down 15 million bags of 50 kgs in the past one year. This means there was a freeze in jobs in the construction industry. The private investors in real estate panicked, and the competition from the government partly explains.
The fiscal policies have been much of a trial and error. How the government arrived at a TB interest of 16% baffles. The finance sector focused on doing business with the government rather than individuals. Data indicate some banks committed as much as 47% of their deposits to government TBs and Bonds. Only 2 banks had a commitment of below 30% and none below 25%.
Effectively, credit remained unreachable to individuals and SMEs.
It was not surprising that the purchase of new cars dropped 21%. Instructively, the purchase of lorries and pick-ups dropped 40%! An affirmation of costly credit and a drop in the construction industry.
Mbadi is definitely a frustrated man. He has a job to do. Shouting about education was good and helpful to him. The public uproar will make it easy for him to fill the gap, at least by 60%.
Opinion By Robert Oswayo
