Hustler Fund To Be Unveiled On November 30
Simon Chelugui, Cabinet Secretary for cooperatives and micro, small, and medium enterprises, said that the Hustler Fund will go into effect this year on November 30 when President Dr. William Ruto formally announces it.
He added that the Personal Finance Product will be open to applicants on November 30, and will give access to loanable funds of between Ksh 500 and Ksh 50,000.
The Hustler Fund is a ground-breaking initiative that aims to provide accessible credit to groups of the population that have been neglected for too long. In addition to promoting the hustlers' companies, it is intended to increase national savings.
He advised the public to stop relying on any form of communication because the business will be conducted via mobile phones. Kenyans have been asked to exercise caution when they receive messages asking them to sign up for the Hustler fund on their phone or on websites.
The CS added that borrowers would be asked to return in 14 days, after which the 8 percent interest would be calculated pro rata or on a daily basis press.
“This fund is a saving component. Every time one borrows, 5 percent of the amount goes to a saving scheme where the money earns interest, and for every Ksh 2 saved, the government adds Ksh 1,” stated Chelugui during a press conference.
The CS also denied media reports that said loan defaulters will face fines of up to Ksh 10 million. He made it clear that the sanctions listed in the National Treasury's laws only apply to fund officials who might misappropriate or embezzle money.
Chelugui said that the Hustler Fund will collaborate with the top mobile network providers including Safaricom, Airtel, and Telkom to deliver the cash. In addition, they will establish a cooperative call center to disseminate information and address borrower concerns and inquiries.
The CS stated that his ministry has already established a technical committee to plan, design, and implement the Fund’s products.
Guarantors and collateral won't be necessary for the paperless fund because it may be accessed on a mobile device although intermediaries will be needed for later-launched products including Micro Loan, SMEs Loan, and Start-Ups Loan.
“There will be no intermediaries for the personal finance product. It will just be the hustler and his or her phone. No registration is required, borrowers will only be required to dial a code,” said the CS.