Kenya Gov't Publishes Regulations for Implementation of Sh50 Billion Hustlers Fund

Treasury Cabinet Secretary Njuguna Ndung’u has published regulations that will govern the Sh50 billion Hustlers Fund under the Public Finance Management Act.

To be eligible for single-digit interest-rate loans under the Hustlers Fund, one must be older than 18 years and possess a Kenyan national identification card, according to the regulations. They must also belong to MSMEs, SACCO societies, Chama and table banking organizations, or any other registered association.

A Chief Executive Officer (CEO) will be responsible for overseeing and controlling the daily management of the Fund and will be required to open and maintain such bank accounts with the Board’s and the National Treasury’s approval.

The Hustlers Fund CEO, who will be appointed by Treasury CS, is also required to send a statement of accounts and list the expenses paid from the Fund each fiscal year to the Auditor-General.

“Prepare quarterly and annual financial and non-financial reports in a format prescribed by the Public Sector Accounting Standards Board and submit the same to the National Treasury with copies to the Controller of Budget and the Commission on Revenue Allocation,” the regulations state.

Those found guilty of misappropriating funds, failing to provide information, or providing false information when applying for funds face fines of up to Sh10 million or a five-year jail sentence, or both.

“Otherwise than for the purposes of these Regulations, commits an offence and shall be liable to a fine not exceeding ten million shillings or a term of imprisonment not exceeding five years, or to both,” read the regulations.

Custodians of the funds could also face a fine or penalty should they reveal private information to anyone besides those who have been approved by the board.

“Having possession of, or control over, or access to, any documents, information, returns or forms and communicates anything contained therein to any person other than a person to whom he is authorized by the Board to communicate it; or otherwise than for the purposes of these Regulations,” the regulations add.

Last month, President Ruto said the Sh50 billion annual kitty, which targets small and medium-sized businesses, will give collateral-free loans to cooperative groups at single-digit interest rates.

He clarified that the Hustlers Fund, which will be launched on December 1st, will be disbursed in the form of loans and not grants.