Ruto further mutilates the much-hyped Hustler Fund as he sets loan limit
Ruto further mutilates the much-hyped Hustler Fund as he sets a loan limit, a minimum of KSh 500 up to a maximum KSh 50,000.
The much-anticipated Hustler Fund’s launch date has been extended, as President William Ruto also imposed new borrowing restrictions.
In accordance with President William Ruto’s pledge to address the issue of the high cost of credit, the Cabinet on Tuesday, November 15, approved the legislative and institutional structure that would serve as the cornerstone for the establishment of the Hustler Fund.
The Hustler Fund’s initial phase would begin on November 30, according to an announcement posted on social media by State House, Kenya.
“The loan limits will be a minimum of KSh 500 up to a maximum of that will be determined by the borrower’s credit score and capped at KSh 50,000.
Based on a person’s credit score, a loan limit will be determined and each principal amount will have an 8% annual interest rate.
Only Kenyans with national ID cards and KRA pins who are at least 18 years old can apply for loans.
A registered group or organization’s-(Sacco societies, Chama groups, table banking or any other associations) annual revenue cannot exceed Ksh100 million while requesting for a loan.
The National Treasury published tentative regulations that will be used in the allocation of funds to the so-called hustlers.
The exchequer also stated that any beneficiary of the Hustler Fund who misappropriates or defaults the fund should be liable to a fine not exceeding KSh 10 million or a term of imprisonment not exceeding five years or both.
In his campaign promises, Ruto promised a Ksh50 billion fund to help small and micro businesses get access to reasonable loans so they could start and maintain their businesses.
Hustler Fund regulations divide Kenyans Kenyans on social media expressed different opinions on the Hustler Fund’s rules and regulations.
Azimio la Umoja One Kenya Coalition Party spokesperson Makau Mutua tweeted: “WHAT, pray, can a “hustler” do with a loan of KSh 500-50,000 at an interest rate of 8%? A cruel joke on “hustlers.” A gimmick, a head fake. The so-called Hustler Fund is DOA. There’s no there if this is THE “plan.”
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