Cooperatives Cabinet Secretary, Simon Chelugui, refuted reports that hustler fund loan defaulters will be fined Ksh10 million.
Addressing the media on Friday, November 18, the CS maintained that the fine targeted officials managing the funds.
He insisted that the government would not charge defaulters such an exorbitant fee.
"We have seen reports that loan defaulters be charged up to Ksh10 million. There is no such thing as the fine targets fund officials who may embezzle or misappropriate the funds," he stated.
Further, the CS indicated that the fine would also apply to scammers who plan to con Kenyans once President William Ruto launches the funds.
"It also targets those who create fake links to dupe Kenyans and defraud them," he explained.
Consequently, he urged Kenyans to be weary of individuals planning to take advantage of loan seekers through dubious internet links.
"All Kenyans should resist attempts for invitations calling on them to register for the funds on website or phones. No registration will be required," he stated.
He added the government would roll out a USSD code in the coming weeks to ensure that Kenyans are not duped through false registration.
Through the operationalisation of the funds, Kenyans can take individual loans and repay the money in 14 days.
The loan limit was set from Ksh500 and Ksh50,000 for individual borrowers.
Groups can borrow up to Ksh250,000. The funds are set to be launched on November 30.
