NAIROBI-The Hustlers’ Fund set to be launched in Kenya at the end of this month will not require any official registration, according to Sacco Review reports.
Co-operative and Micro, Small, and Medium Enterprises [MSMEs] Cabinet Secretary [CS] Simon Chelugui has clarified that Kenyans seeking to access the funding will use a particular code on their mobile phones.
Chelugui who was speaking in his office on Thursday said unlike financial institution that demand a lot of paperwork, guarantors or collaterals among other hurdles, hustlers’ borrowers will face no such barricades.
“No registration is required and all that will be required is to dial a code through you phone. There will be no intermediaries, it will just be the hustlers and their phones,” he said.
The minister said government is working on developing a procedural code that would be used by borrowers to get the funds, it will be through the available mobile operators, Safaricom, Airtel and Telcom. There will also be no online registration for borrowers.
The government will establish a call centre that will respond to issues and questions of borrowers. The centre will be active once the fund is launched on November 30,2022.
“We wish to disregard the public from all forms of communications inviting them to register for the funds on websites or phone numbers,” Chelugui warned. Actions will be taken to individuals who will try to hoodwink Kenyans to register for the funding.
The CS said the second cluster of financing for microfinance institutions and small and medium sized enterprises [SMEs] would be accessed through banks and other registered associations.
The second product will be micro-loan and SME loans startups, the government will work with banks, SACCOs, MIF, Chamas and all forms of associations and collectives to deliver the funds.
The Kshs 50 billion fund is part of President William Ruto’s pledge to uplift SMEs through the “Bottom-up” approach.
Kenyans will be able to access loans of between Kshs 500-Kshs 50,000 through the Hustlers’ Fund at an interest of 8 percent per year.
National Treasury had unveiled regulations that will govern the fund under the Public Finance Management Act.
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