By Faith Anene, Kakamega
Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya has revealed that the government is in the early stages of merging financial organizations that offer loans into one mega institution called the ‘Biashara Fund.’
This new initiative aims to streamline the loan disbursement process, creating a one-stop shop for government loans across various sectors, from industrial development to specialized programs for women, youth, and other targeted groups.
Oparanya made the announcement during a major event at Khwisero Stadium in Kakamega County, where he presided over the issuance of Uwezo Fund cheques amounting to Ksh57.5 million and another Ksh28 million in Youth Enterprise Development Fund loans. The funds are part of a broader government initiative to support grassroots development by financing self-help groups and empowering the youth.
The Uwezo Fund, Youth Fund, and Women Enterprise Development Fund have historically operated as separate entities, but the government’s decision to merge them under the Biashara Fund aims to increase efficiency, reduce administrative overlaps, and ensure a more cohesive and effective approach to financial support.
“This merger is crucial for eliminating redundancy and ensuring that our financial programs reach more people and businesses. It will create a streamlined process where individuals and groups will access funds more quickly and easily,” Oparanya explained.
He emphasized that the Biashara Fund would serve as a central hub for all government loan schemes, benefitting entrepreneurs from all walks of life, especially those in need of startup capital.
This consolidation is expected to significantly enhance access to funding for the 17 million Kenyans engaged in micro, small, and medium-sized enterprises (MSMEs).
The event at Khwisero Stadium also saw the distribution of Ksh57.5 million in Uwezo Fund cheques to self-help groups in Kakamega County. Oparanya disclosed that the funds had already been distributed to all 12 constituencies in the county, urging local leaders to ensure the prompt disbursement of these funds to the deserving groups.
“I want the money to reach all qualifying groups as quickly as possible, so it can circulate within the local economy and create opportunities for more people,” Oparanya said.
In Khwisero Constituency alone, several groups were beneficiaries of the fund, including Khurewe Self-Help Group, which received Ksh200,000, Miradi Self-Help Group (Ksh200,000), Vugu Vugu (Ksh100,000), and Chungulange (Ksh200,000), among others. These funds are aimed at empowering the groups to enhance their economic activities and improve their standards of living.
Despite the positive impact, Oparanya raised concerns about the high default rate on loans, which has hindered the full reach of these funds. “When we give you the money, it is not a grant, but a loan with an affordable interest rate. It is essential that borrowers repay these loans on time so that others can benefit,” he stressed.
“Let’s do business. We no longer have white-collar jobs as the only path to success. As we go through school, we should think about how we can become entrepreneurs, this is what will create wealth and opportunities for us,” Oparanya encouraged the youth.
The government is also making significant strides to support the youth in their entrepreneurial ventures. Oparanya shared that the government’s Hustler Fund has already disbursed Ksh60 billion to borrowers, with the current borrowing limit set at Ksh150, 000, to be repaid within 30 days.
Additionally, Oparanya outlined plans to train 70 youths from every ward in the country. The aim is to provide them with the necessary skills and resources to become successful entrepreneurs. Upon completing the program, each youth will receive a Ksh50, 000 grant to kickstart their business.
For those leaving secondary school, Oparanya mentioned an exciting opportunity to take Form Four leavers abroad for employment, with a starting salary of approximately Ksh300, 000. These initiatives are designed to reduce unemployment rates and provide youths with practical skills and opportunities to improve their livelihoods.
The CEO of the Uwezo Fund is Kipkirui Lang’at and local political leaders led by Khwisero MP Christopher Aseka, Bishop Titus Khamala (Lurambi), Emmanuel Wangwe (Navakholo), Fred Ikana (Shinyalu) and Elsie Muhanda (Kakamega Women Rep) also spoke at the event, expressing gratitude to the government for removing the Ksh300 fee that was previously required for first-time ID card holders.
They urged the youth to take advantage of this opportunity and register in large numbers ahead of the 2027 general elections.
“We thank the government for these initiatives, and I encourage our youth to embrace the opportunities provided by these funds and programs,” Aseka said.
