Kenyan lawmakers are pushing for sweeping reforms to improve accountability and efficiency in two of the country’s flagship financial inclusion programs, following a detailed review of their operations.
The National Assembly’s Special Funds Accounts Committee convened a high level stakeholder meeting with officials from the State Department for Micro, Small and Medium Enterprises MSMEs Development, alongside representatives from the Hustler Fund and the Uwezo Fund.
The session brought together senior government officials, including Principal Secretary Susan Mang’eni, Hustler Fund CEO Henry Tanui and Uwezo Fund CEO Peter Lengapiani, to examine performance, governance gaps and opportunities for reform.
Committee Chairperson Fatuma Mohammed said the review was part of Parliament’s broader oversight mandate to ensure public funds deliver tangible benefits to citizens.
“Accountability is not a bureaucratic inconvenience; it is the foundation upon which public trust is built,” she said, stressing that the committee aims to seal loopholes and improve service delivery.
Push for legal reforms and expanded funding
Uwezo Fund officials raised concerns over outdated regulations governing its operations, citing the Public Finance Management Uwezo Fund Regulations, 2014, as no longer adequate.
According to the fund’s leadership, gaps in the legal framework have disrupted key administrative functions, including the gazettement and renewal of constituency level management committees.
Lengapiani urged lawmakers to support amendments to Legal Notice No. 21 to align the fund’s governance structure with evolving economic realities and policy frameworks.
The fund is also seeking approval to write off long standing loans deemed unrecoverable, arguing that keeping them on record misrepresents its financial health.
In addition, Uwezo Fund requested increased budgetary support, including Sh400 million for lending to groups, Sh200 million for digitization and ICT upgrades, and additional allocations for constituency facilitation and operational costs.
Meanwhile, the Hustler Fund highlighted its rapid growth, noting it currently serves more than 22 million Kenyans through its digital lending platform.
CEO Henry Tanui called for enhanced funding to support financial literacy campaigns and public awareness initiatives aimed at improving responsible borrowing and repayment rates.
He also appealed for increased allocations to strengthen the fund’s liquidity and to develop independent ICT systems that can support its expanding user base.
The fund, launched to boost access to credit for individuals and small businesses, remains a central pillar of the government’s financial inclusion agenda.
Lawmakers underscored the importance of both funds in supporting grassroots economic activity, particularly among youth, women and persons with disabilities.
Mohammed described the programs as critical lifelines that enable small traders to restock businesses, launch enterprises and build sustainable livelihoods.
She said reforms would focus on enhancing transparency, improving governance structures and ensuring funds reach intended beneficiaries efficiently.
The committee pledged continued collaboration with implementing agencies to strengthen the programs and maximize their impact in addressing inequality and unemployment.
As scrutiny intensifies, the outcome of the proposed reforms is expected to shape the future of Kenya’s microfinance landscape and determine how effectively public funds can drive inclusive economic growth.
