Cooperatives and MSMEs Cabinet Secretary Simon Chelugui has dismissed claims that Hustler Fund defaulters will be fined heavily.
Chelugui said the penalty of a fine and imprisonment only targets officials hellbent on defrauding the fund.
"There is no such thing. The penalties in the regulations target fund officials who may embezzle or misappropriate the funds," he said.
There have been concerns among Kenyans over the harsh conditions set by the state regarding the funding.
There have been reports that defaulters are likely to be fined up to Sh10 million, imprisonment for five years or both.
President William Ruto said the fund will be rolled out beginning December 1.
Ruto said the fund will be disbursed through an online platform.
He said committees to regulate disbursement are not needed.
"We are working with our mobile network operators as Safaricom, Airtel, Telcom, and others and technology providers because that is the platform this money is going to be disbursed," he said.
Ruto said individual borrowers will be targeted in the initial phases before being offered to Saccos, SMEs and cooperatives.
An allocation of Sh50 billion is set to be channelled to the kitty annually.
The loan limit is set between Sh500 and Sh50,000.
