On Tuesday, February 14, economist David Ndii endeavored to identify the source and those in charge of the Hustlers Fund, the centerpiece initiative of President William Ruto.
Ndii, who is the Chairman of the President’s Council of Economic Advisors (CEA), made an appearance on Citizen TV but struggled to identify the Hustlers Fund’s financiers.
The top economist in Kenya pointed out that Hustlers Fund was a private company operation that provided loans to Kenyans who were in need of money.
“We don’t have access to the hustler fund since it is handled by the private sector. The hustler fund is inaccessible to public officials. An engine offered by telecom operators powers it “Ndii elucidated.
He insisted that the Hustlers Fund was neither owned by or sourced from President Ruto’s administration; rather, it served as a facilitator.
The economist went on to refute the claim that President Ruto and a small group of people were responsible for the Hustlers Fund kitty.
This comes after Bernard Odero Okello and Kevin Ndoho Macharia, two petitioners, filed a lawsuit in December 2022 to contest the organization’s founding.
In their appeal, the two claimed that by creating the Ksh50 billion fund, President Ruto had broken the law.
“No board has been established as was planned by the cabinet secretary under Regulation 10 of the regulations. Furthermore, the CEO has not been appointed by the cabinet secretary in accordance with regulation 14(1), the petitioners said.
The two petitioners stated in their appeal that although the fund was being distributed to Kenyans, there was no effective management system in place.
In particular, the petitioners stated that the Hustlers Fund did not have a board of directors to oversee it or a chief executive officer as required by the 2022 regulations for the Public Finance Management (Financial Inclusion Fund).
However, the court that gave President Ruto permission to carry out his economic recovery agenda flatly rejected their request to have the fund suspended until the lawsuit is heard and decided.
Without appropriate administrative safeguards, as required by the constitution, the Public Finance Management Act as read in conjunction with the laws establishing the fund, Okello and Macharia stated, “about Ksh100 billion will be unaccounted for from the consolidated fund.”
Ndii defended the fund by pointing out that the Public Finance Management Act, 2012 was properly followed, as the High Court had upheld.
The reason why President William Ruto ordered an increase in credit restrictions for borrowers who had properly serviced their loans on February 3, 2023, is unclear, nevertheless.
Six million Kenyans, out of the 18 million who have chosen to use the credit facility, now have higher borrowing limits, according to Ruto.
According to Ruto, “We have identified KES 6 million persons to extend their limit beginning tomorrow.”
