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Elizabeth Nkukuu, the acting CEO of Hustler Fund has explained the rationale behind this irrevocable commitment.
Once you sign up, the membership is permanent, given the fund’s structure, with 70% of investments earmarked for long-term savings.
“You cannot opt out of Hustler Fund. You will remain in the fund because of the 70% that is on long-term savings, you cannot opt-out because you will access your money at 60 when you retire,” Nkukuu asserts.
Nkukuu has also shed light on the different types of borrowers since the fund was instituted one year ago.
“There are those who borrowed out of curiosity. They borrowed once and never did again, there’s a second lot that needs basis, others borrow on impulse, up to three times a day,” she said.
The CEO also says that the scoring method for credit is supposed to change after November. Initially, people got the funds based on how much they transacted on their Mpesa.
“Every four months, the limit will be revised, after the anniversary, there will be a review of some issues about the hustler fund, and a new rescoring method will be recreated,” Nkukuu said on Spice FM.
There have been questions about the Hustler funds operations, including where it gets its seed capital and the regulatory framework in place.
The CEO shed light on the origins of the fund being a government grant and owed up to the fact that a regulatory vacuum persists , but there is work in progress to create oversight .
“There’s currently no regulatory body. 70% savings will be regulated by the Retirement Benefits Authority (RBA) and the other will be under the Capital Markets Authority (CMA). So far, the money is in the banking sector, in custody accounts,” she explained.
Nkukuu explained that a custody account is meant to protect the money from the volatility of the financial market and since the money is not reported in the bank’s financial books, it is safe.
Another issue that has been shrouded with secrecy, on the hustler fund saving is the availability of information.
“You cannot see the crediting of the interest of the hustler fund, The money is in government securities and currently does not display that information,” she said.