How Kenyans Will Save to NSSF Through Ruto's Hustler Fund

NSSF building in Nairobi's Upper Hill.
NSSF building in Nairobi's Upper Hill.
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NSSF

Beneficiaries of the much-anticipated hustler fund will automatically contribute a percentage of the loan to the National Social Security Fund (NSSF). 

Co-operatives Cabinet Secretary nominee, Simon Chelugui, detailed the revelations before the National Assembly Committee of Appointment on Saturday, October 22. 

President William Ruto's administration was said to be keen on encouraging Kenyans to enrol on pension schemes in a bid to secure their future.

Discussions on the saving model for the National Social Security Fund (NSSF) through the hustler fund were, therefore, at an advanced stage. 

Simon Chelugui the Cabinet Secretary nominee for Co-operatives and Micro, Small, and Medium Enterprise Development appearing before the National Assembly Committee on Saturday October 22, 2022
Cooperatives and Micro, Small, and Medium Enterprise Development CS Simon Chelugui appearing before the National Assembly Committee on October 22, 2022.
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National Assembly

However, modalities for the percentage to be contributed were still being worked on by the government, according to Chelugui. 

"We will design a way through which every borrower will be able to save. The discussions ongoing right now is that every borrower who will take Ksh1,000 will save Ksh50, which will go to the pension fund," he stated.

Further, he reiterated that the hustler fund will be rolled out in the coming months as the government was working on regulations to operationalise the fund.

The hustler fund will be published through a Public Finance Management (PFM) Act, and then a policy statement and operation guidelines will follow. 

"Afterwards, we will register hustlers. This will be done through a form submitted through mobile phones.

"We will also help facilitate the registration," the incumbent Labour CS stated.

Additionally, Chelugui added that applicants will be grouped together with credit scores being used to issue loans other than the normal use of securities such as title deeds.

Earlier in the week, Ruto met with various stakeholders at NSSF, revealing that a national savings scheme will be rolled out in the coming days.

Ruto has been keen on growing the NSSF fund pool which he stated can be used to grow the economy and implement development projects.

"The new pension plan will cover every adult Kenyan, including civil servants and those in the formal sector and informal sectors. The President said the new pension scheme will help the economy to grow," a statement released by State House stated. 

President William Ruto addresses the public during the Mashujaa Day celebrations on October 20, 2022..jpg
President William Ruto addresses the public during the Mashujaa Day celebrations on October 20, 2022.
William Ruto