Why Kenyans Are Fearing Ruto's Hustler Fund

He called for the loan to be conducive to the common mwananchi and criticised the loan which drew a 10 per cent interest.

Marvin Chege Marvin Chege
Nov 14, 2022 - 09:24 Updated: Nov 14, 2022 - 09:24
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Why Kenyans Are Fearing Ruto's Hustler Fund
Deputy President William Ruto during the unveiling of his manifesto on June 30, 2022. /DPPS

Nyamira Senator Okong'o Omogeni has opined that the highly anticipated Ksh50 billion Hustler Fund has aspects that are making the youth view it as unattractive and unfriendly.

Speaking during a KTN News interview on Monday, November 14, the senator took an issue with the high-interest cap which he said was making Kenyans hesitate on signing up for the fund for fear of being auctioned.

"People fear loans, and when the government comes up with loans at 10% they will tell you they don't want that money, what Mwananchi was expecting was a government fund with an interest of maybe not more than 3%, but this one of 10% is very unattractive," he said.

Nyamira Senator, Okong'o Omogeni. /FACEBOOK.EGESA FM

In terms of the loans being offered, he expressed caution noting that he experienced a scenario when residents of his Nyamira County signed up to access the Uwezo Funds only to be auctioned when they defaulted on payment.

"When I was speaking to women groups, the government was giving money through Uwezo funds, they were given money and one day auctioneers were on their doors, people even lost cattle they had given as security," he disclosed.

He called for the loan to be conducive to the common mwananchi and criticised the loan which drew a 10 per cent interest.

Omogeni's sentiments were backed up by Kamukunji Member of Parliament Yussuf Hassan who believed that the Fund was disguised as just another bank loan with a 10 per cent interest rate beyond the reach of poor people.

"At the beginning when it came up in public rallies, it was a brand, a grant to uplift poor people's access to credit, and the biggest obstacle facing the poor hustler is access to capital, now what we have is another bank loan at 10% beyond the reach of any ordinary person, he stated.

Ruto clarified on Sunday, December 13 that the Hustler Fund, which he has been pushing for during his campaigns, will not be available as grants but as 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.

Under the program, those seeking to benefit from the Ksh50 billion kitty will need to join cooperative groups, which will act as their guarantors.

The fund is part of President Ruto's administration to empower small firms such as motorcycle transport operators and women-owned ventures with loans provided at single-digit interest rates without collateral. The annual fund will also target micro, small and medium, enterprises (MSMEs).

Under proposed regulations released by the National Treasury on Friday, November 11, Kenyans who would be found committing four offences would serve five years in jail or be fined Ksh10 million.

Among the offences include providing falsified information when applying for the fund which will draw penalties and misappropriation of the funds and its assets.

Treasury CS Njuguna Ndung'u during a past press address. /FILE

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