Image: PCS
During the third Cabinet meeting, which was presided over by President William Ruto, the Cabinet on Tuesday approved the launch of the Hustler Fund.
The Sh50 billion kitty is expected to offer much-needed relief to over eight million Kenyans who had been blacklisted by various credit rating agencies.
"The Hustlers Fund is part of the administration’s answer to predatory lending that historically has denied many households an opportunity to make their rightful contribution to nation building," a dispatch from State House said soon after the meeting.
The Sh50 billion loan product will be unveiled by President William Ruto.
Loans from the kitty for small businesses will be capped at Sh50, 000 and offered at an annual interest rate of eight per cent on a pro-rata basis.
"The Hustlers Fund also offers affordable credit by charging of interest of 0.002 per cent per day, which is 500 times cheaper than the cheapest current products which range between 1 per cent to 10 per cent per day," the statement said.
Besides advancing loans for businesses, the fund will also offer borrowers an opportunity to make monthly savings where the government will counter the savings by contributing half the amount.
In short, the pension scheme offers contributors a 50 per cent return on their savings.
"This means that for every Sh2 saved, the government will contribute Sh. 1."
The statement reiterated the earlier stand that the Hustler Fund will progressively offer other products in the remaining part of the financial year which ends in June 2023.
"All four product offerings will be delivered electronically and with no requirements to fill any manual forms or to secure any third-party guarantors. As such, the Hustlers Fund will be delivered without any bureaucracy," the statement said.
President William Ruto will preside over the launch of the Hustler Fund.
