Africa-Press – Kenya. President William Ruto has clarified that individual Kenyans will be able to borrow between Sh50,000 to Sh500,000 from Hustlers Fund.
The President nonetheless said Kenyans will, initially, only be allowed to borrow from Sh500 to Sh50,000 starting Wednesday.
Ruto said that another product of the Hustlers Fund- The Micro Loan- will be launched later on, to allow individuals to borrow much higher amounts.
“This product will allow you to borrow from Sh50,000 to Sh500,000. We will launch the product in February. We have given ourselves 90 days to develop the product properly,” the President said.
Initially, communication from the Cabinet said the loans will range from a minimum of Sh500 to a maximum of Sh50,000 for individuals.
Speaking during the launch of the fund at Green Park in Nairobi on Wednesday, Ruto said borrowers who are in groups will be able to access up to Sh10 million in loans.
“This amount will be accessed by those in saccos, registered groups or cooperatives of 10, 20 or so members,” he said.
The President added that saccos regulated by the Saccos Societies Regulatory Authority will be able to access between Sh10 million to Sh100 million.
“This is a product that we will be launching later on, around April,” he said.
Ruto said the government will be launching a new product for borrowers seeking loans from Hustlers Fund every 60 days.
“We want to make sure every Kenyan is empowered to do business. It is the beginning of the journey towards a single interest rate regime. Interest rates for long have been very high,” he said.
“A trader from Ruaka told me they pay 10 per cent daily. When they get Sh1,000 from shylocks, they pay them Sh1,100 in the evening. This predatory lending has seen many Kenyans get blacklisted.”
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