The National Treasury has released the draft regulations to govern the creation and administration of President William Ruto's signature Hustler Fund.
Hefty fine awaits Kenyans in proposed Hustler Fund regulations
The draft regulations reveals the management structure, offences and penalties as well powers of the CEO.
President William Ruto during a past meeting in State House, Nairobi
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Dubbed the Public Finance Management (Financial Inclusion Fund) Regulations, 2022, the draft regulations stipulate the management structure, offences and penalties as well as the folding of the fund.
Treasury CS Prof Njuguna Ndung’u welcomes input from Kenyans as the ministry conducts public participation ahead of the launch on December 1, 2022.
Treasury CS Prof Njuguna Ndung'u during the launch of the budget preparation process for the FY 2023/24 & the Medium-Term Budget
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Offences and penalties for violating laws governing the Hustler Fund.
The offences govern future employees as well as Kenyans applying for the Sh50 billion fund.
The following is a list of violations contained in the draft Public Finance Management (Financial Inclusion Fund) Regulations, 2022.
- Misappropriation of any funds or assets of the fund, or assisting or making any person to misappropriate or apply the funds otherwise than in the manner provided.
- Failing to give information or giving inaccurate or misleading information or falsifying information or misrepresenting information required under the regulations.
- Failing to treat privileged information, application documents, and loan documents as secret by communicating the same to unauthorised persons.
The above-stated offices will attract a maximum fine of Sh10 million and or a jail term of 5 years.
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Process of shutting down the fund.
In the event of winding up of the fund, the cash balances shall be transferred to the Exchequer while other assets of the Fund shall be transferred to the National Treasury.
Other proposed laws to regulate the Hustler Fund include;
The Hustler Fund will be managed by an advisory board, a CEO and the secretariat.
The CEO who will be appointed by the CS will also become the fund administrator and serve for a term of four years and eligible for an extension of one term.
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The Fund administrator will have the power to open loan accounts of all successful applicants or financial intermediaries and maintain a record of the amount disbursed.
Banks and other lenders will also be allowed to apply for the funds for onward lending to their customers.
In case the fund has extra resources, the CEO and fund administrator will have the power to invest the surplus money in government securities with the approval of the board.
The CEO will also submit a statement of accounts to the Auditor General within three months after the end of every financial year.
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