Kenya President William Ruto announced that plans are the initial stage to establish a startup fund which will give startups in the country the opportunity to scale up and become serious enterprises.
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Ruto stated that the bill is currently being prepared for presentation in parliament and that the fund will help in derisking startups in the country and set them on a path to growth.
The presidency also announced that the government will partner with leading tech giants to train Kenyans to use digital skills at international standards. He will also launch Hustler Fund Season 2 by February 2023 which will focus more on established entrepreneurs and startups.
The Hustler Fund is Ruto’s flagship $410 million loan project and about 1.14 million Kenyans have registered for it. Last week, concerns rose about privacy issues surrounding the fund.
The fund, worth 50 billion shillings ($409 million) a year over the next five years, would help liberate more than 15 million people from predatory lenders by offering loans of up to 50,000 shillings, Kenya’s presidency said on Twitter.
Lending at an annual rate of 8%, the fund is many times cheaper than the average lender in the market, Ruto said in a speech in the capital Nairobi, reneging on a promise made during campaigning to offer the credit interest free.