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Hustler Fund To Be Issued Online; It Will Attract an 8% Rate Per Annum

The government is in talk with mobile operators and technology providers.

by Ramskie Duevela

The hustler fund will not be distributed by a committee, according to Commander in Chief of the Armed Forces and Kenya’s fifth president William Ruto. This was a pledge made by the Kenya Kwanza administration during their campaigning earlier this year.

Ruto went on to criticize individuals who believed a special committee would need to be formed to distribute the monies to Kenyans living nearby.

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The product is going to be seamless, you will not need any committee, you do not need to know anybody and the product will be online just like M-Pesa.I know some of you had made arrangements to form a committee for disbursing Hustler funds. Sorry I will disappoint you there will be no Hustler Fund committee,’

The president further assured Kenyans that nobody would be left behind, claiming that they had already made it feasible for individuals to borrow using regular phones and had created a USSD code that was simple to use. In order to ensure that the funds will be distributed, Ruto further stated that they are in discussions with their cell operators and technology providers.

The first batch of loans will have an annual interest rate of 8% and range from 500 Ksh to 50,000 Ksh based on the borrower’s credit history. The Kenya Kwanza administration targets ten billion people. Tough conditions have also been set for those who will fail to pay back their loans.

Tough Conditions If You Fail To Pay Back The Hustler’s Fund

Days after the government under the stewardship of president William Ruto announced that the hustler fund will be available to Kenyans aged 18 and above in a bid for them to boost their businesses or use the money for their own purposes, tough conditions have been set for those who will not pay back.

anyone who fails to pay the loan will be subjected to a 10 million fine or jailed for five years. The same measures will be met by those who give any false information while borrowing the loan. Current Treasury Cabinet Secretary Njuguna Ndungu in the financial inclusion law 2022 has stated that those who will pay their loans on time will receive good lower rates but those who don’t will be charged higher rates as well as penalties.

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