The public has been advised to be vigilant of communications inviting them to register for the Hustler Fund on various online platforms and text messages sent on their mobile phones.
CS Chelulgui's statement on Hustler Fund fraud
The Hustler Fund will be active from November 30, 2022, after President William Ruto launches it officially.
Cooperatives and Micro, Small and Medium Enterprises Cabinet Secretary Simon Chelugui while speaking at the ministry's headquarters told members of the public to disregard every manner of communication urging them to register for the funds.
He further said all the transactions on the fund will be done on a mobile phone. His statement comes after gullible Kenyans cried foul over being taken advantage of by unscrupulous people claiming to be working with the fund.
"There will be no intermediaries for the personal finance product. It will just be the hustler and his or her phone. No registration is required, borrowers will only be required to dial a code," CS Chelugui said.
The CS further divulged that the fund will become active on November 30, 2022, after President William Ruto launches it officially. Chelulgui further said that money available for lending will range between Sh500 and Sh50,000.
He stated that borrowers will be required to repay in 14 days of which the 8 percent interest will be calculated pro-rata or on a daily basis.
“This fund is a saving component. Every time one borrows, 5 percent of the amount goes to a saving scheme where the money earns interest, and for every Sh2 saved, the government adds Sh1,” Chelugui said.
At the same time, the CS dismissed media reports claiming that loan defaulters will be fined up to Sh10 million saying the penalties outlined in the regulations published by the National Treasury only target fund officials who may embezzle or misappropriate the funds.
The Fund will be working with the leading mobile network operators, Safaricom, Airtel, and Telkom to deliver the funds. A joint call center that will disseminate information and respond to issues and questions of borrowers will also be set up to address the same.
Hustler Fund as envisioned by President William Ruto aims at making affordable financial support to part of the population that has been left behind for too long financially. It seeks to boost national savings and promote the hustlers’ businesses as well as cultivate the culture of saving among Kenyans.
Other products that expect to be launched at a later date are Micro Loan, SMEs Loan, and Start-Ups Loans which will require intermediaries.
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