Deputy President Rigathi Gachagua announced on Thursday, November 17, a 70 percent stake set aside for women in the eagerly awaited hustler fund.
Speaking during a meeting with representatives from all 25 United Nations agencies based in Kenya at his Nairobi office, he noted that even if the funds were not reserved, women would still receive more than 50% of the funds because they are honest and will repay.
“The women of Kenya are very hardworking and very enterprising. They are also of very high integrity that we are very happy that they will take most of these funds because they will pay. They know the money is not for free,” he stated.
The Dp also asked for assistance from the UN delegates while promoting the bottom-up economic model, stating that its goal was to consider everyone’s demands.
Read: President William Ruto Sets Conditions For Ksh50 Billion Hustler Fund
This comes after President William Ruto set a new launch date for the eagerly awaited Ksh50 billion hustler fund, while also imposing new borrowing restrictions.
The cabinet announced that the loan interest rate will be capped at 8% yearly and calculated on a prorated basis as the first single-digit credit product in the country and the region.
Treasury also listed four offenses that might result in fines of up to Ksh10 million or a five-year jail sentence for Kenyans who commit them. Penalties will apply for offenses including misappropriating funds, failing to provide information, or providing false information when applying for the funds.
Read: Inside The New Terms For Ksh50 Billion Hustler Fund
Simon Chelugui, the Cabinet Secretary Co-operatives & Micro, Small and Medium Enterprises (MSMEs), has however refuted claims Hustler Fund defaulters will be fined up to Ksh10 million. Instead, CS Chelugui said those fund officials misappropriating the fund will be prosecuted.
He continued to add that individuals found creating fake websites, links, and misleading the members of the public will be charged.
“We have seen media reports claiming that loan defaulters will be fined up to Sh10 million. There is no such a thing,” CS Chelugui said.
“The penalties outlined in the regulations which are the normal BFM regulations target funds officials who may embezzle or misappropriate the funds.”
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