Hustlers’ Fund: Co-operative Bank Ready to Collaborate with Gov’t, SACCOs in transforming members’ lives via KSh 50b facility
The Co-operative Bank of Kenya is set to work with the government and the SACCO movement in implementing the KSh 50 billion Hustlers’ Fund.
President William Ruto is expected to launch the yearly fund by December 1, 2022, which he said will be accessed via SACCOs, Chamas and microfinance.
Co-op Bank Chief Executive Officer Gideon Muriuki welcomed Ruto’s move to transform the lives of low-income earners, traders and MSMEs via the fund.
Speaking during the launch of NSE Market Place on October 11, 2022, Muriuki said the lender is ready to transform the co-operative sector through the KSh 50 billion hustlers’ fund.
“We are all set for the key challenges you have set for us to deepen this sector further. The Sacco structure meets the requirements of successfully handling the hustler fund in terms of financial access, in terms of accessibility, inclusivity, affordability and overall sustainability of the fund,” said Muriuki.
Muriuki noted that since the lender was listed on the NSE, its business transformation has touched many lives. He said the bank transformed the SACCO movement into banking entities, with over 550 Front Office Service Activities (FOSAs).
This saw the lender’s asset increase from KSh 83 billion at the time of listing to KSh 600 billion in the current financial statements.
“We believe we are playing a much bigger role in supporting our Kenyan people and the region. During 2019/2020, the Co-op bank distributed over KSh 11 billion to the cooperative movement as dividends at that critical moment, which was a very timely relief for that sector,” he said.
MSMEs transformation
Muriuki said the lender focuses on the transformation of Micro, Small and Medium Enterprises (MSMEs).
“Most notably, we have set root in the MSME market. We have over 1.9 million Kenyans in the MSME market banking with us,” he added.
The co-op bank joined the NSE in 2007, at a time when the market dynamics were not favourable.
Muriuki likened the story of the Cooperative bank to the bottom-up economic model spearheaded by Ruto’s administration. “We started our IPS preparations in 2007 and had to deal with several challenges. The fast challenge was coming from the bottom of the pyramid as a cooperative society.
“The IPO raised KSh 5.4 billion. This was a lot of money for a cooperative bank was a lot of money. The money came in handy for us as a bank, supporting the bottom of the pyramid,” he said.
