Kenyans will have access to loans of up to 50,000 shillings through the Hustler Fund
NAIROBI, Kenya, November 16 – Kenyans will be able to access loans of between 500 and 50,000 shillings through the scammers fund at an interest rate of 8% per annum.
According to a report from Statehouse, lending limits for the fund will be determined by the borrower’s credit rating.
The 50 billion shillings fund is part of President William Ruto’s aim to uplift small and medium-sized enterprises (SMEs) through the ‘bottom-up’ approach.
During his inaugural speech, Ruto pledged to set up the Hustler Fund, dedicated to the capitalization of SMEs to make credit accessible on affordable terms that do not require collateral.
“The implementation of the administration’s signature pledge is intended to free the people of Kenya from the bondage of predatory lending,” the Statehouse statement read.
Last week, the National Treasury unveiled the regulations that will govern the Hustler Fund under the Public Financial Management Act.
Under the regulations, individuals will need to be over 18 and hold a Kenyan identity card to qualify for the loans.
They must also be members of micro, small and medium enterprises (MSMEs), SACCO companies, Chama and table banking groups, or any other registered association.
The funds will be administered by a Director General who will be required to open and manage these bank accounts with the approval of the Board and the National Treasury; as well as supervising and controlling the day-to-day administration of the Fund.
The Managing Director of the Hustler Fund, who will be appointed by the Treasury Board, will also ensure that he submits to the Auditor General the statements of accounts relating to the Fund and shows the expenditure incurred by the Fund each financial year.
The Treasury has also outlined four offenses which will see Kenyans fined up to 10 million shillings or an alternative prison term of five years if committed.
Violations include embezzlement, failure to provide information or falsifying information when applying for funds will result in penalties.