In the sweltering heat of Nyali, PS Susan Mang’eni handed out cheques worth Ksh 3.88 million to 29 groups. It makes for a good photo op, but let’s do the math: that averages to about Ksh 133,000 per group. In an economy where a decent boda boda costs Ksh 150,000, are we empowering youth or just keeping them busy?

The Principal Secretary for MSMEs knows this. That is why she is calling for a radical change in the law to allow the Uwezo Fund to lend to *individuals*, not just groups. It is a tacit admission that the "group lending" model, while socially cohesive, is economically inefficient for modern entrepreneurship.

The Policy Shift

Mang’eni’s proposal to amend the Public Finance Management Act is a necessary evolution. The current model forces brilliant individual entrepreneurs to drag along "passengers" in a group just to access capital. By targeting individuals, the state hopes to unlock real innovation rather than just subsistence projects.

• The Barrier: Group dynamics often kill business agility. Decisions take too long, and disputes over money destroy the enterprise.
• The Opportunity: Individual loans would allow skilled youth (plumbers, techies, designers) to capitalize their specific trades directly.
• The Risk: Default rates. Groups provide social collateral (peer pressure to repay). Individuals can disappear. The state will need a robust credit scoring system—perhaps linking with the Hustler Fund data.

A Drop in the Ocean

While the legal changes are welcome, the scale of funding remains pitifully small compared to the need. Ksh 3.88 million for an entire constituency is a drop in the ocean. If the government is serious about the Bottom-Up agenda, the Uwezo Fund needs to be capitalized with billions, not millions.

Giving a youth group Ksh 100,000 is not capital; it is pocket money. We need to stop romanticizing poverty alleviation and start financing wealth creation. Mang’eni is on the right track, but she needs a bigger chequebook.

The Verdict

Change the law, yes. But more importantly, change the scale. You cannot jumpstart a Ferrari with a AA battery.