Ruto declares Hustler Fund Kenya’s only corruption-free govt project
By Maureen Kinyanjui |
He emphasised that a committee-managed Hustler Fund might have resulted in a significantly different situation.
President William Ruto declared the Hustler Fund as the only government initiative in Kenya untouched by corruption.
At the launch of Kenya’s 5th Open Government Partnership Action Plan in Nairobi, Ruto credited the fund's clean record to its technology-driven management system.
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Ruto on Thursday explained that the use of technology has helped ensure the project remains insulated from corrupt practices, making it both seamless and transparent.
He emphasised that a committee-managed Hustler Fund might have resulted in a significantly different situation.
The head of state also revealed that his administration had invested approximately Sh12 billion in the Hustler Fund.
Over 22 million Kenyans, he added, have benefitted from the initiative, with more than two million people borrowing from the fund every day.
"We rolled out the Hustler Fund with Sh12 billion invested. Already, 22 million Kenyans are beneficiaries, and today, we have 2 million Kenyans borrowing from the Hustler Fund daily. "We deliver it through a technology platform," Ruto stated.
Technology has created a framework to ensure its insulation, making it the only government project free from corruption. Just imagine if we were distributing the Hustler Fund using committees from every location. It would be chaos. Technology has made it seamless, transparent, and easy," he added.
The president also highlighted how the government is leveraging technology to benefit the public. He acknowledged that while technology, including artificial intelligence, presents some challenges, it offers significant opportunities.
A customer using a phone for money transaction. (Photo: Handout)
Ruto pointed to the Means Testing Instrument, a key part of the controversial new university funding model, as another example of the government's reliance on technology to drive its initiatives, amid ongoing debate among parents, students, and the state.
Despite the controversy, university management has defended the model as effective.
Ruto's Hustler Fund is one of the flagship projects he promised during his campaigns.
A person must be at least 18 years old and have a valid national identification card, a registered SIM card, and a mobile money account with Safaricom, Airtel, or Telkom to qualify.
The fund specifically supports the country's small-scale traders.
It comprises four products: personal, micro business, SME, and start-up loans.
To access the fund, Kenyans can dial *254# on their mobile phones.
During the launch in 2022, borrowers were warned against defaulting, with the government issuing strict measures to curb the same.
Those who default on the loans will see their interest rates increase from 8 per cent to 9.5 per cent.
If a customer fails to make loan payments on time, the interest rate will increase by an additional 15 days.
Borrowers who default will also have their Hustler Fund accounts frozen.
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