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President Ruto has described the newly launched Hustlers Fund as a game changer, saying it will unlock the economic equality of all Kenyans.
Speaking during the launch of the fund at Green Park in Nairobi on Wednesday, Ruto said the kitty was borne out of the need to give Kenyans in small and medium-sized enterprises (SMEs) access to cheap and collateral-free loans.
"I am happy that from today we shall all be equal as Kenyans. This is the fund that is going to equalize all the people of Kenya so that every citizen can know that they matter and they count," Ruto said.
He added: "The origins of this fund go back to our numerous trips across the country and everywhere we went Kenyans complained of loans and a lack of money to grow their businesses.”
Deputy President Rigathi Gachagua told off the critics of the fund, saying it will give ordinary Kenyans a voice.
"The Hustler Fund is a revolution, the hustler agenda is a permanent agenda in government, the hustler has found his way to the decision-making table of this country," he said.
"Sh500 and Sh50,000 is little money to non-hustlers, so they should go to the other lending institutions charging more interest. Let critics leave the hustlers alone."
To access cheap loans under the Hustlers Fund, Kenyans will only need to dial *254# or use the mobile app platforms of mobile network operators, Safaricom, Airtel and Telkom starting December 1st.
The fund will offer four different products namely start-up loans, micro-loans, SME loans, and personal loans, with a 14-day repayment period and an annual interest rate of 8% calculated per day. This means a customer who borrows Sh500 from the fund will pay back Sh501.53 after 14 days, representing Sh1.53 in interest.
If the loan is not repaid in 14 days, the customer’s credit rating is affected and the customer is given 15 more days and if the loan is not repaid, the interest rises to 9.5 percent a year
After more than 30 days of default, the borrower loses all the credit scores accumulated and the Hustler Fund account is frozen. There is no CRB listing and this default does not affect the person’s credit rating with other creditors.