The council of economic advisors chairman has said that the Kenyan government borrows Ksh 25billion every Thursday.
While being interviewed,he said that part of the money is used to power government expenditure by lending Kenyans at a rate of 8%.
“The government has the capacity to go to the market and borrow from banks at a rate of 8% but the bank will not lend to the poor.” Ndii stated.
He further added that the same is applied to the Hustler Fund whereby the government borrows from banks then lends to Kenyans at the same interest rate of 8%,adding that the borrowing cost is passed on to Kenyans.“We pass exactly the same cost the goivernment is borrowing at for the Hustler Fund.”
He said that the fund is solely run by players in the private sector,” The Hustler Fund is run by the private sector. We have no access to it; it’s fully automated. It is run by an engine by the telcos. The money stays with a custodian in a bank.”