David Ndii Reveals How Hustlers Fund is Managed & Why Gov't Officials Have No Access
Economist David Ndii on Tuesday, February 14, sought to clarify the source and the individuals in control of President William Ruto’s flagship project, the Hustlers Fund.
Appearing on Citizen TV, Ndii who is serving as the Chairman of the President’s Council of Economic Advisors (CEA) was hard-pressed to reveal the persons behind the Hustlers Fund.
The leading Kenyan economist noted that Hustlers Fund was a project of a group of private companies that were loaning economically vulnerable Kenyans.
“The hustler fund is run by the private sector, we have no access to it. No public official has access to the hustler fund. It is run by an engine provided by telecom companies,” Ndii explained.
President William Ruto with Economist David Ndii and Sports CS Ababu Namwamba in Washington DC, on March 3, 2022.
Courtesy Ababu Namwamba Twitter
He maintained that President Ruto’s government was just a facilitator but not the source nor the owner of the Hustlers Fund.
The economist further moved to dispel the rumour that President Ruto and a few individuals were behind the Hustlers Fund kitty.
This is after two petitioners, Bernard Odero Okello and Kevin Ndoho Macharia, moved to court in December 2022 to challenge its establishment.
In their petition, the two argued that President Ruto acted contrary to the law by establishing the Ksh50 billion kitty.
“There has not been any establishment of a board contemplated under Regulation 10 of the regulations by the cabinet secretary. Further, the cabinet secretary has not appointed the CEO under regulation 14(1),” noted the petitioners.
In their petition, the two petitioners claimed that the fund was being disbursed to Kenyans yet there was no proper system for management.
In particular, the petitioners explained that Hustlers Fund had no board of directors to regulate the Hustler Fund and a Chief Executive Officer as required by the Public Finance Management (Financial Inclusion Fund) Regulations, 2022.
However, their attempt to have the fund suspended until the matter is heard and determined was utterly rejected by the court that gave President Ruto the green light to implement his economic recovery policy.
“Over Ksh100 billion will be unaccounted for from the consolidated fund without proper administrative mechanisms to safeguard the same as required under the constitution and the Public Finance Management Act as read together with the regulations establishing the fund,” Okello and Macharia argued.
In defense of the fund, Ndii noted that Regulations and the Public Finance Management Act, 2012 was fully complied with, as it was affirmed by the High Court.
It’s, however, not clear why President William Ruto on February 3, 2023, ordered for the increase of loan limits for borrowers who had faithfully repaid their loans.
Ruto explained the borrowing cap for six million Kenyans of the 18 million who have opted into the credit facility had been increased.
“We have identified KES 6 million people to increase their limit starting tomorrow,” Ruto noted.
President William Ruto (centre) interacts with a trader in an exhibition during the official launch of the Hustler Fund at the Green Park Terminus on November 30, 2022.