Ruto Announces Changes to Hustler Fund
President William Ruto, speaking during the Iftar dinner at State House, Nairobi, on Monday, April 8, announced plans to modify the Hustler Fund to adhere to Shariah principles, following requests from Muslim leaders.
He assured attendees that he would process the adjustment to ensure the fund’s compliance, enabling more Kenyans, including Muslims, to benefit from it.
Ruto also urged Muslim leaders to prepare a proposal outlining how other government financial products could be made Shariah-compliant.
He emphasized the necessity of broadening financial accessibility, acknowledging that the current system excludes many Muslims.
The Hustler Fund, which has already assisted over seven million Kenyans in pursuing entrepreneurial ventures, will undergo changes to accommodate Islamic finance principles.
Additionally, other government financial instruments will be adjusted to align with Shariah law, according to the President’s remarks.
The recalibration of the Hustler Fund is expected to primarily impact groups registered under the Micro and Small Enterprises Authority (MSEA) who seek funding through the program.
These groups typically receive loans ranging from Ksh20,000 to Ksh1 million, with an interest rate of 7 percent per annum, making them eligible for Shariah-compliant financing.
Shariah law prohibits the charging of interest (riba), deeming it exploitative, but allows for alternative forms of financing such as murabaha, a cost-plus arrangement.
In murabaha, both parties agree on the cost and markup of an asset, often factoring in inflation to compensate lenders for the time value of their money, without generating excessive profits.
In Other News: Ruto’s Ambassadorial Nominee For Ghana Rejects Role Offer
Ruto Announces Changes to Hustler Fund
