Hustlers Fund is Not Free Money, President Ruto Says

President Ruto has clarified that the Hustlers Fund, which will be launched on December 1st, will be disbursed in the form of loans and not grants.

Ruto said the Sh50 billion annual kitty, which targets small and medium-sized businesses, will give collateral-free loans to cooperative groups at single-digit interest rates.

"On December 1st, we will launch the Hustler Fund and so it is up to you now to organize yourselves into Chamas, SACCOs, cooperatives or individually. It is not free money; it is business money that you will repay… We want to ensure that Kenyans don’t fall prey to shylocks who charge extremely high interest rates on loans," Ruto said at a church service in Kericho County on Sunday.

He added: “The money that will be borrowed from the Hustlers Fund will strictly be used by the small and medium enterprises to upgrade their businesses. If you borrow money from the Hustlers Fund, you’ll plunge it into business, and refund the government at an interest rate below 10 percent per annum.”

Ruto said they will involve Parliament to formulate laws to govern the operationalization of the Hustlers Fund, adding that they have put up a department in charge of the funds to ensure accountability.

“I hear some people saying committees are being formed to oversee the program’s roll-out. Let me be very clear, there is no committee being created to prepare for the Hustlers Fund. If you try to steal government money, then we'll deal with you accordingly as per the law," he added.

The president had earlier noted that the government had put up a ministry in charge of the funds to ensure accountability and that the funds reach everybody that they’re meant to reach.