Nairobi — Co-operatives & Micro, Small and Medium Enterprises (MSMEs) Cabinet Secretary Simon Chelugui has refuted claims Hustler Fund defaulters will be fined up to Sh10 million.
Instead, CS Chelugui said that fund officials misappropriating the fund will be prosecuted.
He also says individuals found creating fake websites, links and mislead the members of the public will be charged.
“We have seen media reports claiming that loan defaulters will be fined up to Sh10 million. There is no such a thing,” CS Chelugui said.
“The penalties outlined in the regulations which is the normal BFM regulations target funds officials who may embezzle or misappropriate the funds.”
Hustler Fund seek to offer single-digit interest rate loan facilities to small businesses such as “mama mbogas”, boda bodas, among others.
The Sh50 billion fund is part of President goal of uplifting small and medium-sized enterprises (SMEs) through “Bottom-up” approach.
Last month, President William Ruto said plans were underway to operationalize the fund by December 1 2022.