Kenya launches flagship “resourceful fund” to support the poorest, revive economy
Kenya’s President William Ruto has officially launched his “resourceful fund”, the flagship measure of his campaign intended to give the poorest access to credit and revive the economy of this African country “from below“.
Since taking office in September, Ruto has endeavored to deliver on his campaign promises in a country struggling with historic drought, rising living costs and a $70 billion debt burden. Now, the Kenyan leader, who presented himself during the presidential campaign as the herald of the “resourceful” of the common people, inaugurated the first part of his program: personal loans to a rate of 8% up to 50,000 shillings (about 400 euros), accessible to any adult Kenyan with a money transfer application by mobile phone. Endowed with a total amount of 50 billion shillings (about 400 million euros) over five years, the “resourceful fund” will include three other components: micro-credit, loans to SMEs and start-up loans.
“With this program, the government is committed to creating opportunities for millions of people at the bottom of our economic pyramid to advance and realize their aspirations,” the Kenyan president said. “More affordable credit will boost borrower confidence and inject significant amounts into productive activity across the economy,” he added. This fund will also oblige borrowers to open a savings account, 5% of the amount of the loan taken out being automatically paid into a personal savings plan that the government will top up for a maximum of 6,000 shillings per year (about 45 euros).