President William Ruto has announced that Kenyans tapping from the financial inclusion fund, popularly known as the Hustlers Fund, will obtain the funds through an online platform.
Addressing the Kenya Kwanza PG on Wednesday, Ruto disclosed that there will be no committees regulating the disbursement process to allow a seamless process ahead of its expected first phase launch on November 30, 2022.
“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,” said President Ruto.
“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,” he added.
The Head of State went on to note that he has already launched talks with Mobile Network Operators (MNOs) and service providers to enroll the programme online.
“We are working with our MNOs and technology providers and all the mobile operators including Safaricom, Airtel, Telcom, and others and that is the platform this money is going to be disbursed,” said Ruto.
“Have no doubt that nobody will be left behind. We have also made it possible to borrow using an ordinary phone where we have a USSD code where people can easily access it.”
President Ruto further divulged that the funds will first be availed to individual borrowers then have Saccos, SMEs and eventually to the big borrowers, the cooperatives.
Approximately 10 million borrowers are being targeted as Ruto assured that the necessary resources have been made available for the Hustler Fund takeoff.
Cabinet had earlier announced that in the first phase of the fund, the loan limits will be at a minimum of Ksh.500 and a maximum pegged at Ksh.50,000, based on the borrower’s credit score.
Ruto, in the Kenya Kwanza manifesto, promised an annual allocation of Ksh.50 billion to the hustler fund, to enable small and micro enterprises to access affordable credit to initiate and sustain their business, as part of the bottom-up economic model.
The funds will however not be availed as grants, but as loans which will be paid back with an interest rate of 8% per annum.
Those seeking to benefit through the kitty ought to have joined cooperative groups, which will act as their guarantors.