President William Ruto has set a condition for ‘hustlers’ eagerly awaiting the Sh50 billion a year Hustler Fund he promised during his campaign period.
The president in his Mashujaa Day speech stated that hustlers will have to participate in a pensions programme to access the cheap credit.
“All borrowers on this platform will also participate in a short-term savings plan and long-term pensions programme. Every saving made by borrowers on this platform will be merged by the government of Kenya on a 2:1 ratio to a level to be determined by the programme,” the president said.
This means the government is using the hustlers fund to grow pension contributions in extension of its recent efforts to push the increase of National Social Security Fund (NSSF) contributions from the current Sh200 to about Sh2,000, which has been blocked by the High Court.
The condition as stipulated by President Ruto had not been disclosed before.
Moreover, it is not yet clear whether this condition will encourage or discourage disbursement of cheap credit to the sectors and individuals who have for long been left out.
It will only be clear when the programme becomes operational.
Furthermore, President Ruto announced the condition on accessing hustlers fund as he stated that he will launch the Hustler Fund credit and savings product on December 1.
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“Already, expectations are very high across the country on our promise to provide a fund that will offer affordable credit to those at the bottom of the pyramid. We are aware that the most significant question in the streets, boda boda parking lots and fresh produce markets is: When will the Hustlers Fund become operational? I have an answer for you today. I will launch this Hustler Fund credit and savings product on the 1st of December this year,” the President stated.
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Nevertheless, the head of state also acknowledged that many Kenyans are in dire need of cheap credit and had huge expectations of his campaign promises.
President Ruto said credit products would be available to both individuals and firms.
“Credit products will be available to small businesses on digital platforms at affordable rates to individuals and through chamas, groups, saccos and cooperatives,” he said.
The head of state assured that no Kenyan citizen will be excluded from the credit system, adding that the beneficiaries will be eligible to access credit as they work their way out in paying their loans.
