Ruto’s Hustler Fund unattractive to hustlers
Hustler Fund is unattractive to hustlers according to Azimio lawmaker and Nyamira Senator Okong’o Omogeni.
Nyamira Senator Okong’o Omogeni on Monday, November 14, described the hustler fund as unattractive and unfavorable to young people.
Speaking on KTN News, the senator criticized the fund’s high-interest cap, implying that many Kenyans are staying away out of concern that they may be auctioned off in the event of a payment default.
“People fear loans, and when the government comes up with loans at 10% they will tell you they don’t want that money, what Mwananchi was expecting was a government fund with an interest of maybe not more than 3%, but this one of 10% is very unattractive,”
Yussuf Hassan, a Kamukunji Member of Parliament, also shared his comments as he implied that the hustler fund is just another bank loan with a 10% interest rate that is out of the purview of the poor.
“At the beginning when it came up in public rallies, it was a brand, a grant to uplift poor people’s access to credit, and the biggest obstacle facing the poor hustler is access to capital, now what we have is another bank loan at 10% beyond the reach of any ordinary person, he stated.
Their remarks come weeks before President Ruto unveils the hustler fund program set to be launched on December 1.
As per the initiative, anyone seeking to benefit from the Ksh50 billion annual fund must be a member of cooperative organizations that will serve as their sureties.
Senator Omogeni was cautious of the loan being offered, reflecting that he had an experience with such a program when residents of his county, Nyamira got access to Uwezo funds only to be auctioned after defaulting.
“When I was speaking to women groups, the government was giving money through Uwezo funds, they were given money and one day auctioneers were on their doors, people even lost cattle they had given as security,” he disclosed.
He advised that this loan be made conducive for the common man and spoke against the loan attracting 10% interest.
President Ruto’s administration has committed to providing loans to small firms such as motorcycle transport operators and women-owned ventures at single-digit interest rates without collateral.
The Ksh50 billion annual fund will support micro, small, and medium, enterprises (MSMEs).
The Treasury has also published proposed regulations to pave the way for the operationalization of the much anticipated Hustler Fund.
Treasury listed four offenses in the regulation released on Friday, November 11, for which Kenyans might be fined up to Ksh10 million or given a five-year jail sentence instead.
Misappropriation of the funds and their assets, which will be formally referred to as the Financial Inclusion Fund, is one of the offenses.
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