Sifuna: Ruto promised Hustler Fund grants during campaigns, not loans

Nairobi Senator Edwin Sifuna has accused President William Ruto of duping Kenyans on the newly-unveiled Hustler Fund during his campaigns.

President Ruto launched the fund on Wednesday to offer Kenyans loans from a minimum of Ksh.500 to as high as Ksh.50,000 at 8 per cent pro-rated basis or a daily rate of 0.002 per cent.

He hailed it as the key to unlocking the economic equality of all Kenyans.

But according to Senator Sifuna, the fund is not what Ruto promised Kenyans while wooing them for votes in his quest for the top seat ahead of the August General Election.

Speaking on Citizen TV's Day Break show on Thursday, the senator says the head of state promised interest-free grants to small-scale traders, not loans.

"This is not what was promised during the campaign. During the campaign, the huslters were told that they would be receiving a grant which would not be subject to any interest for them to support their businesses," Sifuna said.

He likened it to the regular digital credit facilities such as Fuliza, the mobile lending program by telecommunications giant Safaricom.

"What was launched yesterday is essentially a government-run Fuliza that you can access and pay within 14 days," said Sifuna.

"My problem is with not necessarily the concept, because we all agree that there are people at the bottom of the pyramid for their day-to-day businesses," he added.

Speaking during the launch of the fund at GreenPark in Nairobi, President Ruto said the Hustler Fund was borne out of the need to give Kenyans in Small and Medium-sized Enterprises (SMEs) access to capital, adding that his tours of the country ahead of the August General Election gave him access to Kenyans' concerns.

"I am happy that from today we shall all be equal as Kenyans. This is the fund that is going to equalise all the people of Kenya so that every citizen can know that they matter and they count," Ruto said.

"The origins of this fund go back to our numerous trips across the country and everywhere we went Kenyans complained of loans and a lack of money to grow their businesses," added the president.

The fund is accessible through the USSD code *254# and mobile application platforms of any of the mobile network operators in Kenya.

When the customer borrows,  the approved loan will be disbursed to their mobile money account where out of the total approved loan amount, 95% shall be deposited to the mobile money wallet.

The remaining 5% shall be deposited to their savings account scheme of the Hustler Fund.

The savings scheme will split savings into 70% long-term and 30% short term savings, such that 70% of the 5% will go into long term (Pension) and 30% of the 5% will go into short term.