The process of merging Uwezo Fund, Women Enterprise Fund and Youth Enterprise Development Fund to create Biashara Kenya Fund may take longer after the National Assembly Committee on Delegated Legislation rejected new regulations as proposed by the National Treasury.
The parliamentarians who spoke during a pre-publication meeting questioned the level of public participation undertaken and regretted that the gains made through the individual funds could be lost if the merger process is not carefully handled.
The amalgamation of the three funds aims to ensure youth, women, persons living with disabilities and small enterprises access low cost business loans from one agency.
National Treasury Principal Secretary Dr. Julius Muia says the merger of the three existing funds to create Biashara Kenya Fund would save taxpayers at least Kshs. 555.6 million annually in administration costs
Some legislators argue the proposed Biashara Kenya Fund could disadvantage women and other special groups
The committee wants the National Treasury to do away with the proposed 17 percent of the fund that is to be channeled to micro, small and medium enterprises.
The government is exploring use of technology in disbursement of the fund as well as create efficiency and transparency.
According to the Public Finance Management (Biashara Kenya Fund) Regulations, 2020, the kitty will start with seed capital of Kshs 2 billion to be allocated by the National Assembly.