The Financial Inclusion Fund, commonly known as the Hustler Fund in Kenya, is a government initiative aimed at addressing the financial needs of individuals and businesses operating in the informal sector, particularly Micro, Small, and Medium Enterprises (MSMEs). This sector constitutes a significant portion of the Kenyan workforce and plays a crucial role in the country's economy, contributing a substantial portion to the Gross Domestic Product (GDP).
The primary goal of the Financial Inclusion Fund is to provide comprehensive financial solutions tailored to the specific requirements of individuals and businesses at the bottom of the economic pyramid. The fund focuses on various pillars to achieve this objective:
1. Affordable Credit: The fund aims to provide accessible and affordable credit facilities to MSMEs and individuals in the informal sector, enabling them to invest in their businesses, expand operations, or meet other financial needs.
2. Competitive Savings & Pensions Products: It promotes the development and provision of competitive savings and pension products tailored to the needs of the target demographic, encouraging financial security and long-term planning.
3. Comprehensive Insurance Solutions: The fund seeks to increase the uptake of insurance products among individuals and businesses in the informal sector, providing protection against financial risks and uncertainties.
4. Access to Affordable Housing: Recognizing the importance of housing as a fundamental need, the fund endeavors to facilitate access to affordable housing options for individuals and families in the informal sector.
5. Market Linkages: It supports initiatives aimed at connecting MSMEs with markets, both domestically and internationally, to enhance their competitiveness and growth prospects.
6. Financial Literacy: The fund prioritizes initiatives focused on enhancing financial literacy and education among individuals and businesses in the informal sector, empowering them to make informed financial decisions and manage their finances effectively.
By addressing these key pillars, the Financial Inclusion Fund aims to foster financial inclusion, economic empowerment, and resilience within the informal sector, ultimately contributing to broader socioeconomic development and poverty reduction in Kenya.