Kenya has been steadily rising in the ease of doing business ranking index in the world. The World Bank issues the ranking based on different factors like the registration process, acquisition of business permits, access to credit facilities and taxation processes in a country.
These factors are compared to countries across the world before the ranking is done.
However, this might not directly translate to the common mwananchi’s experience. The hindrances to running or owning a business in Kenya vary for individuals, with lack of proper financing and credit facilities being a major issue.
The Hustler Fund is the new kid on the financing block. It was initially meant to be an interest-free credit facility for small businesses. This must have proved to be impractical. It now attracts interest. There is no such thing as a free lunch after all.
In an interview with a local TV station, Deputy President Rigathi Gachagua , said they had inherited a broke government. The government later did away with the fuel and unga subsidies. This effectively caused an increase in the already high cost of living. The Kenya Kwanza government, however, urged Kenyans to trust in their process and promised to deliver on their pre-election pledges.
All this is good in theory. The practicality of it begs me to question a couple of things. If, the coffers were indeed empty where are the Hustler Funds coming from? The infrastructure fund, for example, is proposed to come from a privatization process that the government will undertake.
What is the real mapped-out strategy for the Hustler Fund? Where will the interest be utilised? Will the attached saving scheme materialise even after the government of the day is no longer in power? Will there be beneficiaries attached to the savings in case the original saver is no longer able to access the savings? The government has been bold in its proclamations of transparency. Let’s see that translate to action for the sake of the actual hustlers.
This project does deserve some benefit of doubt. It is in the end a government for the people and by the people. Millions of hustlers believe that President Willian Ruto will do right by them. The wait-and-see approach is fair. We have given chances to worse things in government.
Some economists have always pointed to the frailty of the business exploits of ordinary Kenyan citizens. They have claimed that some businesses are doomed to fail owing to market saturation.
The simu ya jamii , quail business and greenhouse farming are examples of businesses that failed with huge losses. There is a tendency to copy-paste one idea and duplicate it so much that it eventually dies.
Most recently is the smokies and eggs business. Many online ‘experts’ are advising young people to take up the Hustler Fund to start this business. I am no expert. But if past trends are to be relied on, then this too could end up in losses for some people.
A lot of consultation is needed before committing to a business, especially if one wants to use it for actual economic growth. Relying on online hearsay can lead one into a financial hole.
I suppose it is not a long reach to place a fine not exceeding Sh10 million or a term of imprisonment not exceeding five years or both for anyone who defaults on their loans. Kenya is known for its curious judicial findings.
A person who steals a chicken to feed his starving family will face more life in prison than a politician who allegedly commits murder, defrauds the government and its people or embezzles public funds.
The government is not responsible for your poor financial decisions. The funds are available only to persons over the age of 18. By this age, one is ideally supposed to be able to make reasonable choices. Ludicrous stories are floating around about how people are using their funds.
If you are one of these people using your funds in reckless abandon, you are on your own if and when the government comes calling. Your mates will eventually use your story as a cautionary tale. You have to be sure that the possible outcome of your borrowing is palatable.
Like in any other pyramid scheme, hustle or venture someone always comes out on top. For the sake of the boundless trust and faith, the hustlers have placed in their president, I hope some of them come out of this successfully.
