Simon Chelugui, cabinet secretary for cooperatives and micro, small, and medium-sized enterprises (MSMEs), has made it clear that there would be no formal registration requirements for the government’s Hustler Fund program, which will launch at the end of this month.
Speaking to the media at the NSSF Building in Nairobi on Friday, CS Chelugui stated that Kenyans wishing to access the cash would only need to use a certain code on their mobile phones.
Borrowers won’t encounter any obstacles like these, unlike financial products that demand a lot of paperwork, guarantors, or collateral, among other requirements. All that will be required is to dial a code; there is no registration necessary. There won’t be any middlemen; just the hustler and their phones,” he claimed.
Simon Chelugui, cabinet secretary for cooperatives and micro, small, and medium-sized enterprises (MSMEs), has made it clear that there would be no formal registration requirements for the government’s Hustler Fund program, which will launch at the end of this month.
People will use their phone numbers to interact with this first product; they will dial a short code to access a certain menu that directs you to finishing the applications and submissions. The procedure for loading the money will be the same response.
Using the available mobile network carriers, he claimed that the government is putting the finishing touches on a procedural code that will be utilized to distribute the monies to every Kenyan.
In order to deliver the monies, Chelugui said, “The finance will be accessed on our mobile numbers or networks and is working with the top mobile network operators, Safaricom, Airtel, and Telcom.”
Therefore, the CS issued a warning to online con artists who might try to obstruct the process by duping unaware Kenyans into registering for the financing.
According to him, fines in accordance with the laid-out rules would result from this.
Chelugui said, “We desire to dismiss all sorts of communications urging the public to register for the funds on websites or phone numbers.
“The regulations’ penalties are directed at fund officials who might misappropriate, embezzle, or misuse funds. It also targets people who would fabricate webpages and links to deceive the public and steal their money.
At the same time, CS Chelugui said that banks and other registered associations would be the access points for the second cluster of financing for microfinance organizations and SMEs.
He said, “We will engage with the intermediaries such the banks, SACCOs, MIF, Chamas and all types of groups and collectives to supply the hustler funds for the second product, which is micro-loan and SME loans startups.
Chelugui’s comments follow President William Ruto’s recent announcement that the Hustler Fund would only be distributed electronically, with no committee required.
President Ruto said that there won’t be any committees overseeing the payout process to ensure a smooth procedure before the anticipated first phase launch on November 30, 2022, in his Wednesday address to the Kenya Kwanza Parliamentary Group.
The President then stated, “The product will be smooth, you won’t need a committee, you don’t need to know anybody, and the product will be online exactly like M-Pesa.”
“I am aware that some of you had made plans to set up a committee to distribute Hustler funds. I’m sorry to disappoint you, but there won’t be a committee for the Hustler Fund “Added he.
