MERU, Kenya, Nov 14 – Participants in a public consultation workshop on the hustler fund that was held at Meru Teachers college on Monday raised concern over the measures set to be taken against beneficiaries who will default or misappropriate the fund.
Addressing the secretariat during the forum, Meru County Deputy Governor Mr Isaac Mutuma said the measures were very tough for the so-called ‘hustlers’ considering their weak financial stability.
According to draft regulations released by The National Treasury, any beneficiary of the hustler fund who misappropriated or defaulted repayment of the fund should be liable to a fine not exceeding Sh10 million or a term of imprisonment not exceeding five years or both.
According to Mr Mutuma, those listed in the Credit Reference Bureau (CRB) as defaulters are the same people targeted by the fund, and therefore giving them such tough conditions was not helping them in any way.
“These are people who are waiting to take up this opportunity to better their lives but they are faced with severe conditions,” said Mr Mutuma.
He added, “Imagine you had borrowed Sh20,000 and you defaulted then you are required to pay Sh10million. Where will you get it from in the first place? If you fail to pay you are eligible for the imprisonment of five years jail term. Are we ready to fill up our penal institutions with these defaulters?”
He called on the secretariat to consider amending the regulation adding that this was tougher than what financial institutions penalties to the defaulters.
Meru County’s Supreme Council of Kenya Muslims Mr Salim Mohammed called on the secretariat to consider Muslims in the disbursement of the fund because their religion does not allow them to take up loans with interest.
Director of planning at the national planning Mr Samuel Kiiru who was the head of the delegation assured participants that the secretariat will look into all the concerns raised during the forum so as to come up with appropriate regulations to govern the fund.
“We are engaging Kenyans so we take up their views on the administration of the fund and we assure you that we will sit and consider them,” said Mr Kiiru.
The workshop brought together participants from Embu, Tharaka Nithi, Meru, Isiolo, and Marsabit Counties.
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