Hustler Fund Limit, GSU In Nairobi: Ruto's Cabinet Meeting [HIGHLIGHTS]

President William Ruto's Cabinet held its meeting at State House on Tuesday, November 15, just five days apart from its first-ever meeting.

According to a dispatch sent to newsrooms, the Cabinet considered various policy interventions ranging from the State of National Security, the State of Kenya's Public Health including the continued response to COVID-19, Ebola Virus Disease outbreak in the region, the Economy with a focus on access to credit through the Administration’s transformative plan to foster financial inclusion by the establishment of the Hustlers’ Fund and the Security of the country's territorial waters as well as the categorization of Kenyan Waters in the Indian Ocean.

Hustler Fund Limit: Ksh500 Minimum, Ksh50,000 Maximum

The highly anticipated Ksh50 billion Hustler Fund has had its launch date changed to Wednesday, November 30 from Thursday, December 1, 2022. This is after the Cabinet approved the legal and institutional framework to anchor the establishment and implementation of the Fund, also called the Financial Inclusion Fund.

"The ground-breaking Fund is expected to open up affordable credit facilities for the majority of Kenyans who had previously been locked out of the credit facilities and to boost a savings culture while creating momentum for sustainable development. The fund is structured with four products namely Personal Finance, Micro Loans, SME Loans and Start-Up. Cabinet hailed the support received from the regulators including the Central Bank of Kenya, Financial Intermediaries and Financial Institutions and Mobile Network Operators in steering the development of the revolutionary financial product.

"The implementation of the Administration’s signature pledge is tipped to liberate the people of Kenya from the bond of predatory lending," the dispatch read.

As part of the first phase of the roll-out, Kenyans will borrow as low as Ksh500 and a maximum of Ksh50,000. As the first single-digit credit product in the Country and the region, the loan interest rate will be capped at 8 per cent per annum computed on a pro-rated basis.

Kenyans must be above the age of 18 and have a national identity card (ID) to be eligible for the fund. They must also be members of micro, small and medium enterprises, SACCO societies, Chama and table banking groups or any other registered association. 

Registered groups and organizations applying for the loan should not have a turnover of more than Ksh100 million.

Ruto Deploys GSU, RDU To Nairobi

The President also deployed officers from the General Service Unit (GSU) and the Rapid Deployment Unit (RDU) to deal with the rising cases of insecurity in Nairobi.

"In response to the security concern, the cabinet sanctioned upscaling of security surveillance to deter crime and sanctioned swift and decisive action to deal with all those perpetrating crimes.  It was noted that the Nairobi County Security command had been reorganized and further augmented with the deployment of additional specialized police units drawn from the General Service Unit and the Rapid Deployment Unit (RDU).

"Cabinet applauded our security officers who continue to make immense personal sacrifices to keep our nation and its borders safe. The meeting similarly thanked all members of the public who voluntarily give information that is critical to safeguarding our nation," the dispatch stated.

This follows the spike in armed robbery and reported mugging cases in the Central Business District (CBD) and in Nairobi's environs.

The Cabinet also approved the reinstatement of the multi-agency coordination between Kenya's security organs and operators at all points of entry into the country as a heightened measure to detect and prevent trafficking in Narcotics and other psychotropic substances.

Establishing Centre for Entrepreneurship

The Cabinet approved the proposed establishment of the Centre for Entrepreneurship. The Centre, to be domiciled within Kenya Industrial Estates (KIE), will be established through a partnership between the Government of Kenya and the Federal Republic of Germany.

The Programme will target 250,000 youth entrepreneurs aged between 18 and 35 across the country by providing them with information on brand campaigns, websites and call-ins to the centre. Additionally, 100,000 youth entrepreneurs will access in-depth screening services (coaching, mentoring and career guidance).

Overall, this seminal project is expected to create over 50,000 direct and indirect jobs by expanding manufacturing output and improving the overall country’s competitiveness.

Ebola Virus

The Cabinet also considered the continued national response to Covid-19 in the country as well as the Ebola Virus Disease Outbreak in Uganda.

As part of the emergency preparedness and response for the Ebola Virus Disease, the Cabinet noted with satisfaction that the Ministry of Health had reactivated the National Task Force on the Ebola Virus Disease and heightened the level of surveillance at all points of entry into the country with the border Counties taking their rightful lead.