Shield Hustler savings against State meddling
Friday March 17 2023
The move by the Treasury to establish a body mandated to manage the savings from the Hustler Fund has helped clear the doubt as to where the money deducted from borrowers is being kept.
Treasury Cabinet Secretary Njuguna Ndungu unveiled the Board of Trustees for the Kenya National Entrepreneurs Savings Trust (KNEST), the pension scheme for the Hustler Fund.
While it is the first step towards ensuring that money deducted as savings are well managed and invested for the benefit of millions who have joined the scheme, it is important that the body becomes independent and makes investment decisions based on collective benefit for the members.
Reports that Sh1 billion of the savings will be injected into M-Akiba suggest that the government officicals intend to control the new agency in key decisions.
We foresee the risk of the fund being mismanaged and embezzled if professionalism is not infused in its day-to-day running.
Pension schemes should be left to make independent investment decisions that give members the maximum return. The same should be the case with KNEST.
Treasury CS should give the new body the liberty of making investment decisions on behalf of millions who have saved in the fund without political influence.