Kenyans will be able to access loans of between Sh500-Sh50,000 through the Hustlers’ Fund at an interest of 8 per cent per year.
According to a dispatch from Statehouse, the loan limits for the fund will be determined by a borrower’s credit score.
The Sh50 billion fund is part of President William Ruto’s goal of uplifting small and medium-sized enterprises (SMEs) through the “Bottom-up” approach.
During his inaugural speech, Ruto pledged to implement the Hustlers’ Fund, dedicated to the capitalization of SMEs to make credit available on affordable terms that do not require collateral.
“The implementation of the Administration’s signature pledge is tipped to liberate the people of Kenya from the bond of predatory lending,” read the statement from Statehouse.
Last week, the National Treasury unveiled regulations that will govern the Hustlers’ Fund under the Public Finance Management Act. As part of the regulations, individuals will be required to be above the age of 18 years and hold a Kenyan identification card to qualify for the loans.
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They should also be members of Micro, Small, and Medium Enterprises (MSMEs), SACCO societies, Chama and table banking groups, or any other registered association.
The funds will be administered by a Chief Executive Officer who will be obligated to open and operate such bank accounts with the approval of the Board and the National Treasury; as well as supervise and control the day-to-day administration of the Fund.
The Hustlers’ Fund CEO who will be appointed by the Treasury CS will also ensure that he transmits to the Auditor-General statement of accounts relating to the Fund and shows the expenditure incurred from the Fund each financial year.
Treasury also outlined four offences that will see Kenyans fined up to Sh10 million or an alternative jail term of five years if committed.
The offences include misappropriation of funds, failure to give information, or falsifying information while applying for the fund will attract penalties.
SOURCE: Capital news
