Hustler Fund Update
President William Ruto has announced that Kenyans tapping from the financial inclusion fund, popularly known as the Hustlers Fund, will obtain the funds through an online platform.
Addressing the Kenya Kwanza PG on Wednesday, Ruto disclosed that there will be no committees regulating the disbursement process to allow a seamless process ahead of its expected first phase launch on November 30, 2022.
"The product is going to be seamless, you will not need any committee, you do not need to know anybody and the product will be online just like M-Pesa,...I know some of you had made arrangements to form a committee for disbursing Hustler funds. Sorry I will disappoint you there will be no Hustler Fund committee," said President Ruto.
The Head of State went on to note that he has already launched talks with Mobile Network Operators (MNOs) and service providers to enroll the programme online.
"We are working with our MNOs and technology providers and all the mobile operators including Safaricom, Airtel, Telcom, and others and that is the platform this money is going to be disbursed, Have no doubt that nobody will be left behind. We have also made it possible to borrow using an ordinary phone where we have a USSD code where people can easily access it." said Ruto.
The funds will be made available to individual borrowers first, followed by Saccos, SMEs, and finally the large borrowers, the cooperatives, according to President Ruto.
According to Ruto, the Hustler Fund would focus on about 10 million borrowers because the tools are in place for its launch.
According to earlier Cabinet announcements, the loan limits for the fund's initial phase will be a minimum of Ksh. 500 and a maximum of Ksh. 50,000, depending on the borrower's credit score.
In the Kenya Kwanza manifesto, Ruto pledged to provide the hustler fund a yearly allocation of Ksh. 50 billion so that small and micro businesses may receive affordable finance to start and maintain their operations as part of the bottom-up economic paradigm.
However, the money will be borrowed instead of given as a gift, and it will have an annual interest rate of 8%.
Those hoping to gain something from the kitty should have joined cooperative groupings, as they will serve as their sureties.
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