The government through the Ministry of Co-operatives and MSME Development has dismissed reports of Hustler Fund defaulters being fined Sh10 million.
In a statement on Friday, November 18, the ministry's boss, Simon Chelugui, said that there was no such thing, maintaining that the penalties outlined in the regulations target the Fund's officials.
"We have seen media reports claiming that loan defaulters will be fined up to Sh10 million. There is no such thing. The penalties outlined in the regulations target Fund officials who may embezzle or misappropriate the funds," Chelugui stated.
The CS said that the Hustler Fund will be launched on November 30, and his ministry has already established a technical committee to plan and implement the Fund's products.
Chelugui added that the Fund will be available in four products namely; Personal Finance, Micro Loan, SMEs Loan and Start-Ups Loan.
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He intimated that President William Ruto will launch the Personal Finance on November 30, while the other products will be launched later.
"In the Personal Finance product, between Sh500 and Sh50,000 will be available for lending. It will be repaid in 14 days and the 8 percent interest will be calculated pro-rata or on a daily basis," Chelugui stated.
The CS further added that every time one will borrow, 5 percent of the amount will go to a savings scheme where the money earns interest, noting that for every Sh2 saved, the government will add Sh1.
Chelugui further urged Kenyans to disregard any information inviting them to register for the funds, maintaining that there will be no registration required as they will be accessed through a USSD code.
