Simon Chelugui, Cabinet Secretary for Cooperatives and MSMEs, has disputed rumours that Hustler Fund defaulters will be significantly penalized.
Chelugui stated that the penalty of a fine and jail only applies to officials who are determined to swindle the money.
“There is nothing like it. The measures’ penalties are aimed at fund officials who may embezzle or misappropriate monies “He stated.
Kenyans have expressed alarm about the strict financial requirements imposed by the government.
According to reports, defaulters face fines of up to Sh10 million, imprisonment for up to five years, or both.
President William Ruto stated that the fund will be activated on December 1.
According to Chelugui, borrowers will utilize an SMS short code that will take them to a specific menu, leading all the way to the loan application.
“We encourage members of the public to reject any emails urging them to register for funding on a website or by phone,” he added.
He further stated that hustlers will only need their phones because there will be no middlemen in the process.
The Hustler Fund will deliver the monies in collaboration with Safaricom, Airtel, and Telkom.
