Loan limit for Hustler Fund will be KES 50,000
President William Ruto’s Financial Inclusion Fund (Hustler Fund) will provide a minimum loan limit of KES 500 to borrowers from December 1.
According to the dispatch from Tuesday’s Cabinet meeting, the maximum credit offered by the Hustler Fund will be determined by the borrower’s credit score and capped at KES 50,000.00.
“As a first single-digit credit product in the Country and the region, the loan interest rate will be capped at 8 percent per annum computed on a pro-rated basis,” the dispatch read.
During the Cabinet meeting chaired by President Ruto, members approved the legal and institutional framework to anchor the establishment and implementation of the Fund.
The Fund is expected to open up affordable credit facilities for the majority of Kenyans who had previously been locked out of the credit facilities and to boost a savings culture while creating momentum for sustainable development. The fund is structured with four products namely.
The National Treasury has already started holding public town hall meetings to get feedback on the Hustler Fund legislation draft in compliance with the Constitution.
Meru County Commander, in a letter to Meru residents, urged them to provide comments on the Hustler Fund’s proposed legislation.
According to the invitation seen by NTV digital, submissions are to be made in person at Meru Teachers College today, November 14, beginning at 9.30 a.m.
Cabinet hailed the support received from the regulators including the Central Bank of Kenya, Financial Intermediaries and Financial Institutions and Mobile Network Operators in steering the development of the revolutionary financial product.
The Cabinet also approved the proposed establishment of the Centre for Entrepreneurship to facilitate job creation by positioning micro and small enterprises as the driver for employment and wealth creation.
The Centre will be domiciled within Kenya Industrial Estates (KIE) and will be established through a partnership between the Government of Kenya and the Federal Republic of Germany.
The Programme will target 250,000 youth entrepreneurs aged between 18 and 35 across the country by providing them with information on brand campaigns, websites and call-ins to the center.
Additionally, 100,000 youth entrepreneurs will access in-depth screening services (coaching, mentoring and career guidance). Overall, this seminal project is expected to create over 50,000 direct and indirect jobs by expanding manufacturing output and improving the overall country’s competitiveness.