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List of the new Hustler Fund regulations

By Winnie Onyando November 19th, 2022 2 min read

The government has been giving new directives about the Hustler Fund.

In less than two weeks’ different leaders have given different regulations about the Hustler Fund.

Yesterday, Cooperative Cabinet Secretary Simon Chelungui directed that the government will deduct five percent from every amount given through the initiative.

Mr. Chelungui stated that the amount deducted would be forwarded directly to NSSF to save on behalf of the borrower.

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According to Mr. Chelungui, the five percent deduction is aimed at creating a saving culture among Kenyans.

“For every Sh2 borrower savings, the government will contribute Sh1,” stated Mr. Chelungui.

Previously, this regulation was not included in the Public Finance Management (Financial Inclusion Fund) Regulations 2022, published by Treasury Cabinet Secretary Njuguna Ndung’u last weekend.

On the other hand, Mr. Chelungui said that the money given in the Personal Financial Category would be repaid within 14 days at an interest rate of eight percent, which will be calculated pro-rata or daily.

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Again, this point differs from President William Ruto’s point during his campaign when he told Kenyans that the Hustler Fund would be free, only to set the record straight that the funds would not be available as grants but loans.

“On December 1 we will launch the Hustler Fund and so it is up to you now to organise yourselves into Chamas, SACCOs, cooperatives or individually. It is not free money; it is business money that you will repay. We will eliminate shylocks and repayment will be at less than a 10% interest,” Ruto said.

The CS also stated that the borrowers would not need collateral guarantors or file paperwork to access the loan.

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However, the government gave eight requirements for accessing the loans, which included:
1. Form a youth or women’s group
2. Draft a business proposal
3. Produce Good Conduct Certificate
4. Share residential address
5. Produce signatures from 4 guarantors. Two must be your relatives
6. Sign a nondisclosure agreement to serve a jail term for defrauding the government if you fail to repay within 6 months
7. Open a bank account with National Bank or KCB
8. Produce KRA Pin certificate.

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