The highly anticipated unveiling of the Hustler Fund is two weeks away, and the Kenya Kwanza administration has revealed the loan amounts Kenyans will be able to access as fulfilment of the Bottom-Up economic approach as promised by President William Ruto.
Through a statement from Statehouse, Kenyans will be able to access loans of between Kshs 500 to Kshs 50,000 at an interest rate of 8 percent per annum.
One's loan limit will be determined by their credit score hence it is advisable to have good credit standing and one that is performing without blacklisting by the Credit Reference Bureaus (CRBs).
Additionally, the National Treasury unveiled regulations that will govern the Hustler Fund under the Public Finance Management Act which include the age limit for beneficiaries and their requirements to access the funds.
Individuals will be required to be above the age of 18 years and hold a Kenyan identification card to qualify for the loans. They are also required to be members of Micro, Small, and Medium Enterprises (MSMEs), SACCO societies, Chama and table banking groups, or any other registered association.
The Hustler Fund is the brainchild of President Ruto and in his manifesto and subsequent inaugural speech, he stated that the aim of the introduction of the fund is the empowerment of low income earners, by offering affordable credit that does not require collateral which has often crippled the economic growth of these individuals.
“The implementation of the Administration’s signature pledge is tipped to liberate the people of Kenya from the bond of predatory lending,” stated the release from Statehouse.
Kenyans however are warned against misappropriation of funds, failure to give information, or falsifying information while applying for the fund as these offences attract a Kshs 10 million fine or an alternative five year jail term.
This comes after the Central Bank Of Kenya(CBK) announced Credit Repairing Framework that will seek to improve the credit standing of 4.2 million Kenyans blacklisted by CRBs, where financial institutions were directed to offer a fifty percent discount on their loans amounting to Kshs 30 billion, and Kenyans were given till May 31,2023 to clear their mobile phone loans.