The former chairman of the Senate Finance and Budget Committee Billow Kerrow has said the Hustler Fund should have been a grant and not a loan.
Speaking on Monday, Kerrow said giving the Fund as a loan will not serve the purpose of wealth creation.
"This fund should have been a grant and not a loan because the most developed countries in the World have grants," he said at Spice FM.
Kerrow added that the biggest challenge facing the small and micro enterprises is getting the capital to start their business.
"Yes we are going to give money to those people but it is not going to achieve the objective of creating wealth, expanding business, creating employment and startups," he said.
President William Ruto said the government will implement Sh50 billion Hustlers Fund on December 1, to ensure credit is available to small businesses at single-digit rates.
Ruto said that the Fund will attract an interest.
The first phase roll out of the Hustler Funds programme is expected to be launched on November 30.
This is after the cabinet approved the legal and institutional framework to anchor its establishment and implementation on Tuesday.
The Fund is expected to provide affordable credit facilities and boost a savings culture while creating momentum for sustainable development.
It has four products including Personal Finance, Micro Loans, SME Loans and Start Up.
Loan limits will be a minimum of Sh500 up to a maximum that will be determined by the borrower’s credit score and capped at Sh50,000.
