Treasury publishes Hustler Fund regulations, defaulters to be fined Sh10 million; conditions to qualify
2 min readTreasury publishes regulations to operationalize the KSh50bn Hustler Fund ahead of launch by President Ruto in December.
The Sh50 billion Hustler’s Fund would be governed by regulations released by the Treasury Cabinet Secretary Njuguna Ndung’u in accordance with the Public Finance Management Act.
According to the legislation, applicants must be older than 18 and have a Kenyan identification card in order to be eligible for loans with interest rates that are less than ten percent.
Additionally, they must belong to organizations like Micro, Small, and Medium Sized Enterprises (MSMEs), SACCO Societies, Chama and Table Banking Groups, or any other legally recognized association.
A Chief Executive Officer (CEO) will be responsible for overseeing and controlling the daily management of the Fund. The CEO will be required to open and maintain such bank accounts with the Board’s and the National Treasury’s approval.
The CEO of the Hustler Fund, who will be chosen by the Treasury CS, will also see to it that he sends a statement of accounts for the Fund to the Auditor-General, detailing the expenses paid from the Fund each fiscal year.
“Prepare quarterly and annual financial and non-financial reports in a format prescribed by the Public Sector Accounting Standards Board and submit the same to the National Treasury with copies to the Controller of Budget and the Commission on Revenue Allocation,” the regulation indicated.
Treasury also outlined four offenses that will see Kenyans fined up to Sh10 million or an alternative jail term of five years.
The offenses will include misappropriation of funds, failure to give information or falsifying information while applying for the fund will attract penalties.
“Otherwise than for the purposes of these Regulations, commits an offense and shall be liable to a fine not exceeding ten million shillings or a term of imprisonment not exceeding five years, or to both,” read the regulations.
The custodians of the funds will attract a fine or a penalty for disclosing private information to anyone apart from those authorized by the board.
“Having possession of, or control over, or access to, any documents, information, returns or forms and communicates anything contained therein to any person other than a person to whom he is authorized by the Board to communicate it; or otherwise than for the purposes of these Regulations,” the regulations stated.
The highly publicized Fund is set to be launched on December 1, 2022, in partnership with the financial institution.
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