President William Ruto’s government has announced four products within the package of Hustlers Fund, which has turned out to be the most popular affirmative action initiative of the Kenya Kwanza administration.
While taking over the office as Cabinet Secretary for Co-operatives and Small and Medium-sized Enterprises (SMEs), Simon Chelugui outlined personal finance product, micro businesses, MSMEs and Start-up fund as the products that will form part of the package in the popular fund.
“Majority of our Small and medium-sized enterprises collapsed due to lack of adequate and cheaper funding,” said Chelugui.
The Cabinet Secretary affirmed that the Ksh50 billion Hustlers Fund will be operational in December 2022, and will offer cheaper credit for micro and small businesses.
Hustlers Fund requires the setting up of special financing to be actualised through Infrastructure Fund, National Housing Fund, Settlement Fund and Social Welfare, as the key components of President Ruto’s major promise during the 2022 presidential campaigns.
“SMEs need our support in order for the country to be productive. We will assist our cooperatives to access international markets,” said Simon Chelugui.
Chelugui, during vetting, surprised the country country when he noted that, “there is no free money. The Hustlers Fund is not free money. It is money that will provide hustlers with affordable credit at a single-digit interest rate.”
While on campaign trail, President William Ruto indicated that young people would benefit from the affirmative action fund, but did not mention if interests would be charged on it.
The president later sort to clear the air, “we shall implement the hustler fund dedicated to the capitalisation of micro, small and medium enterprises (MSMEs) through Chamas, Saccos and Cooperatives to make credit available on affordable terms that do not require unnecessary collateral,” said the President during his inauguration speech.
The president campaigned on an agenda of a new economic order that would address unemployment and lack of opportunities for youth.
In particular, Dr. Ruto pledged to pump billions of shillings in support for sectors such as the Boda Boda and small retailers through Ksh50 billion annual kitty.
“We will engage TVET institutions to provide necessary skills to enable the Jua Kali industry to supply standardized products for our housing program,” said the head of state.
