Home General Sh10million fine for Hustler Fund officials who misappropriate Hustler Fund, CS Chelgui cautions

Sh10million fine for Hustler Fund officials who misappropriate Hustler Fund, CS Chelgui cautions

by kenya-tribune
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Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Cabinet Secretary Simon Chelugui has has said only officials of the Hustler Fund kitty who misappropriate the funds will be fined Sh10million

However, he refuted claims that defaulters will be penalised.

“We have seen media reports claiming that loan defaulters will be fined up to Sh10 million. There is no such a thing.” Chelugui said during a media briefing at his office in Nairobi.

The CS also threatened leagal action against online fraudsters targeting the would be borrowers masquerading as officials of the kitty.

Chelugui noted that already, there are individuals creating fake websites and links to mislead members of the public.

“The penalties outlined in the regulations which is the normal BFM regulations target funds officials who may embezzle or misappropriate the funds.” He added.

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

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