Following the launch of the Hustler Funds initiative, Kenyans will be able to borrow as little as Sh500 starting on November 30.
Depending on the borrower's credit rating, the maximum limit will be Sh50,000.
During its second meeting with President William Ruto on Tuesday, the Cabinet gave the go-ahead for the creation and execution of the program.
The annual maximum loan interest rate will be 8%, and it will be calculated pro rata.
The first single-credit product in the nation is Hustler Funds.
The cabinet stated that "it is anticipated that the administration's signed commitment will free the Kenyan people from the shackles of predatory lending."
Ruto said during his inaugural that the creation of a hustler fund will offer the wananchi inexpensive and simple loans.
To provide loans on reasonable terms without needless collateral, he stated, "We shall implement the hustler fund dedicated to the capitalization of micro, small, and medium firms through chamas, SACCOs, and cooperatives."
Ruto stated that the Sh50 billion annual fund will be used to promote micro, small, and medium-sized businesses (MSMEs).
The money will be distributed through investment companies and credit societies.
The Central Bank of Kenya (CBK), financial intermediaries, financial institutions, and mobile network operators are among the regulators who have guided the program.
Post a Comment
What is your say on this