The government of Kenya through the Cabinet has approved the establishment of the Hustler Funds programme.
The programme to be unveiled on November 30th 2022 has a maximum loan limit of Sh50,000.
The minimum loan that can be accessed is Sh500.
The loan interest will be capped at 8 per cent per year and computed on a pro-rated basis.
“The implementation of the Administration’s signature pledge is tipped to liberate the people of Kenya from the bond of predatory lending,” the cabinet said.
During his inauguration, Ruto stated that the establishment of a Hustler Fund will provide cheap and easy loans to the wananchi.
“We shall implement the hustler fund dedicated to the capitalisation of micro, small and medium enterprises through chamas, saccos and cooperatives to make credit available on affordable terms that do not require unnecessary collateral,” he said.
Ruto said the Sh50 billion annual kitty will be channelled towards supporting micro, small and medium, enterprises (MSMEs).
The funds will be channelled through credit societies and investment groups.
The programme has been steered by regulators including the Central Bank of Kenya (CBK), Financial Intermediaries and Financial Institutions and Mobile Network Operators.
Here is what some Kenyans on Twitter think about the fund (the opinions expressed below have been curated to come from economists, politicians and common mwananchi).
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