Treasury Cabinet Secretary Njuguna Ndung’u has published regulations under the Public Finance Management Act that will govern the Ksh 50 billion Hustler’s Fund.
Individuals must be over the age of 18 and have a Kenyan identification card to be eligible for loans with interest rates in the single digits, according to the regulations.
They must also be members of MSMEs, SACCO societies, Chama and table banking organizations, or any other registered organization.
A Chief Executive Officer (CEO) will be in charge of overseeing and controlling the Fund’s daily operations. The CEO will be required to open and maintain such bank accounts with the approval of the Board and the National Treasury.
The CEO of the Hustler Fund, who will be chosen by the Treasury CS, will also ensure that he sends the Auditor-General a statement of accounts pertaining to the Fund and a list of expenses paid from the Fund each fiscal year.
“Prepare quarterly and annual financial and non-financial reports in a format prescribed by the Public Sector Accounting Standards Board and submit the same to the National Treasury with copies to the Controller of Budget and the Commission on Revenue Allocation,” the regulation indicated.
Treasury also listed four offenses for which Kenyans could face up to Sh10 million in fines or a five-year prison sentence.
Offenses such as misappropriating funds, failing to provide information, or providing false information when applying for funds will result in penalties.
“Otherwise than for the purposes of these Regulations, commits an offence and shall be liable to a fine not exceeding ten million shillings or a term of imprisonment not exceeding five years, or to both,” read the regulations.
If the fund’s custodians reveal private information to anyone other than those approved by the board, they may face a fine or penalty.
“Having possession of, or control over, or access to, any documents, information, returns or forms and communicates anything contained therein to any person other than a person to whom he is authorized by the Board to communicate it; or otherwise than for the purposes of these Regulations,” the regulations stated.
The widely publicized Fund will be launched on December 1, 2022.
