President William Ruto and his Cabinet on Tuesday approved the roll-out of the first phase of the Hustler fund on November 30.
The approval was made during the second meeting of the Cabinet.
The cabinet said the loan interest rate will be capped at 8 per cent yearly and computed on a pro-rated basis.
Loan limits will be a minimum of Sh500 up to a maximum of Sh50,0000. Borrower's maximum amount will be determined by the credit score.
The hustler fund has four products including Personal Finance, Micro Loans, SME Loans and Start-Up.
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The Fund is expected to provide affordable credit facilities and boost a savings culture while creating momentum for sustainable development.
During his inauguration on September 13, Ruto said Hustler Fund will provide cheap and easy loans to Kenyans
"We shall implement the hustler fund dedicated to the capitalisation of micro, small and medium enterprises through chamas, saccos and cooperatives to make credit available on affordable terms that do not require unnecessary collateral,” he said.
Ruto said the Sh50 billion annual kitty will be channelled towards supporting micro, small and medium, enterprises (MSMEs).
The funds will be channelled through credit societies and investment groups.
