*MSME Development PS Susan Mang'eni Addresses Sub-National Committee on Higher Education Financing Mechanism* The Principal Secretary for MSME Development, Susan Mang'eni, addressed the Technical Sub-National Committee in a session focused on report writing in preparation for the financing mechanism of the evolving funding model for university education. The discussion explored strategies to integrate financial solutions into educational and economic discourse. During her address, PS Mang'eni highlighted the transformative impact of the Hustler Fund model on MSME financing, emphasizing its data-driven credit scoring system. She urged the committee to adopt accurate parameters in classifying learners to ensure a fair and just distribution of funds based on financial need. The Hustler Fund’s credit rating system, reviewed periodically, tracks borrowers' financial responsibility and rewards those who demonstrate good repayment behavior with increased loan limits and better financial opportunities. This holistic approach aims to enhance resource utilization and create long-term economic value. “Our policies and interventions are geared towards addressing the challenges MSMEs face, including access to affordable financing, capacity building, and market linkages,” she stated. One of the most impactful initiatives in supporting MSMEs is the Hustler Fund, established to provide affordable credit to small business owners, informal traders, and entrepreneurs who previously lacked access to traditional financing mechanisms. Since its inception, the Fund has empowered thousands of businesses by providing capital to scale up operations, fostering entrepreneurship, and strengthening local economies. Through the Hustler Fund platform, over 25.3 million Kenyans now have established credit profiles, enabling an assessment of their creditworthiness. To date, the Fund has disbursed over Kshs. 65 billion and mobilized over Kshs. 4 billion in savings. The government has also initiated a graduation program for good borrowers through the Bridge Loan, allowing them access to higher loan limits. Additionally, the Hustler Fund Credit Behavioral Rating System has been introduced, assigning all 25.3 million users a rating ranging from A1 (excellent) to C3 (poor), ensuring a structured evaluation of financial responsibility. “The success stories we have witnessed so far are a testament to the Fund’s effectiveness. It is not just about lending; it is about creating sustainable financial solutions that empower individuals and businesses. By integrating structured credit and savings, we are laying the groundwork for long-term economic growth,” she explained. Beyond financing, PS Mang'eni emphasized the need for financial literacy and business management training for university students to equip them with entrepreneurial skills. Given the high unemployment rate in the country, she stressed that such training programs and mentorship initiatives would help learners start and manage businesses effectively, ensuring sustainability and maximizing growth potential. The engagement provided a platform for academia and policymakers to explore financial strategies for higher education funding. Lecturers expressed interest in how these models could support research, inform policy recommendations, and benefit local communities. The initiative also promotes a culture of saving by allocating a percentage of every loan disbursed into a savings account for beneficiaries. “We cannot do this alone. Collaboration with private sector stakeholders, financial institutions, and development partners is essential in ensuring a sustainable MSME ecosystem. We are working closely with these partners to enhance support structures, including access to digital financial services, credit guarantees, and market development strategies,” she added. Looking ahead, the government remains committed to MSME growth, continuously refining policies and expanding programs to ensure every entrepreneur has an opportunity to succeed. The two years of Hustler Fund experience have provided credible data on beneficiaries' credit history, which will now enable mainstream financial institutions to assess their creditworthiness. Additional innovative financing solutions and policy frameworks are also being explored to further strengthen the MSME sector.