Cooperatives, Micro and Small Enterprises Cabinet Secretary Simon Chelugui says the second phase of Hustler Fund will be launched during Thursday’s Madaraka Day celebrations.
Chelugui said President William Ruto would unveil a new product to be delivered through cooperatives and groups to enable members to boost their businesses and improve living standards.
The CS who spoke in Nandi County said loans to be disbursed would be based on the average credit score of each of the group members and urged Kenyans to form 10-member groups using their mobile phones to access the funds.
“As we celebrate our independence, we also need to secure our economic freedom. Seven million Kenyans had been listed on the Credit Reference Bureau (CRB) but were brought back through Sh500 Hustler Fund loans, and most of them have been cleared and can now borrow up to Sh12,000. Some 22 million Kenyans are now on Hustler Fund,” Chelugui added.
The CS said groups would be assessed to establish if any of the members defaulted in the initial Hustler Fund.
“This product will enable a subscriber to onboard ten members using their mobile phones. They don’t have to travel for registration. Once ten members have been listed, a survey will be carried out to establish if any of the members defaulted. They will be advised and once they clear their dues, they will access loans for their business,” said the CS.
He encouraged Kenyans to empower themselves economically by using the various affordable credit products offered by Kenya's Kwanza government.
The CS also backed the Finance Bill, urging legislators to pass it, saying Kenya Kwanza is a transparent administration.
“For the last five years, there was a challenge due to silence in the budget-making process. For the first time, the Finance Bill is being discussed in every village. It has given Kenyans the power to determine their future, their programmes, development, and the budget even before it is brought to Parliament,” said Chelugui.
He criticised the past regime, claiming the budget process was done in secrecy and even sidelined the cabinet and parliamentary committees.
“This is a transparent administration. Do not listen to those who lost in the elections. We urge Parliament to pass the Bill so that the housing situation is addressed through the House Fund. There are 1,747 slums across the country, including in Eldoret and Kapsabet,” said the CS.