Of wheelbarrows, Ksh 80 Unga and Hasora’s 500 Fund

[Field Marshal]

Let's for a minute forget the core mandate of a government.

Does the government have money to loan in the first place?

Don't those gavaments you woke crowd lionise give their people money all the time through subsidies and tax-breaks?

Have you seen the kind of riots French farmers throw up when their subsidies are delayed?

So why shouldn't the Kenyan hasora get a hand-up from his own govt through affordable credit?

Ni kurogwa mlirogwa ama ni makunyii kubwa inanyonya damu yote inakosa kufikisha oxijen kwa ubongo?

 

[Okiya]

2025?
You are extremely optimistic.
I would give it this time next year.

You see, people are arguing with their hearts here. I want them to argue with their minds now. The point is when you put in all the factors i.e. the cost the money that the government is lending at 8% and the default rate, you can clearly see hustler fund isn't sustainable. It will, and I repeat WILL NOT reach 50b.

The previous government said that the default rate for Uwezo fund was 43%. Is the government willing to loan out Kshs 50b knowing very well that almost 25b will not be paid?

 

[Denis Young]

You see, people are arguing with their hearts here. I want them to argue with their minds now. The point is when you put in all the factors i.e. the cost the money that the government is lending at 8% and the default rate, you can clearly see hustler fund isn't sustainable. It will, and I repeat WILL NOT reach 50b.

The previous government said that the default rate for Uwezo fund was 43%. Is the government willing to loan out Kshs 50b knowing very well that almost 25b will not be paid?

Question:
1. Is the 50b only for the first tranche or does that include the second and third tranche launching in the 2023?
2. What is the estimated repayment rate to avoid draining the fund?

 

[Field Marshal]

Question:
1. Is the 50b only for the first tranche or does that include the second and third tranche launching in the 2023?
2. What is the estimated repayment rate to avoid draining the fund?

Denis, you will argue with these guys until the cows come home.

The HF can only be compared with Safcoms Fuliza, which is still going on years down the road. Both are mediated through tech, and not faceless, unaccountable Secretariats.

What's the default rate for Fuliza? The HF will be around there.

 

[Okiya]

Question:
1. Is the 50b only for the first tranche or does that include the second and third tranche launching in the 2023?
2. What is the estimated repayment rate to avoid draining the fund?

1. First tranche, second tranche....100th tranche. It doesn't matter. The key thing is that the plan was that its a revolving credit of Kshs 50b which will not be reached.
2. If you have a credit limit of Kshs 1 million but can only access Kshs 50k because of your bad repayment history, does that improve the financial situation of your family? The answer should help you answer question 2

 

[Denis Young]

Denis, you will argue with these guys until the cows come home.

The HF can only be compared with Safcoms Fuliza, which is still going on years down the road. Both are mediated through tech, and not faceless, unaccountable Secretariats.

What's the default rate for Fuliza? The HF will be around there.

It is only fair I interrogate their views no matter how wild. We can always learn something new.

I am in agreement on the defult rate. In fact, I expect it to be lower due to the cheap interest. 1bob on 500? The only reason to default would be stupidity ya kuskiza watu kama Babu Owino.

 

[Denis Young]

1. First tranche, second tranche....100th tranche. It doesn't matter. The key thing is that the plan was that its a revolving credit of Kshs 50b which will not be reached.
2. If you have a credit limit of Kshs 1 million but can only access Kshs 50k because of your bad repayment history, does that improve the financial situation of your family? The answer should help you answer question 2

It is either hamuelewi what this first tranche of hustler fund is meant for ama hamtaki kuelewa. There some businesses you can start with at least 500bob but that is not the main goal.

The goal is to provide a cheap line of credit for small businesses and take them away from expensive credit like fuliza. What does this do? You will have a large group of deliberate small business people with more disposable income. Money the would have otherwise used to pay their expensive fuliza interest.

So, to your question. Does it improve the financial situation of a family? I ask you this, if the have been improving their financial situation on more expensive credit, surely they can manage to do the same on cheaper credit.

 

[Okiya]

It is either hamuelewi what this first tranche of hustler fund is meant for ama hamtaki kuelewa. There some businesses you can start with at least 500bob but that is not the main goal.

The goal is to provide a cheap line of credit for small businesses and take them away from expensive credit like fuliza. What does this do? You will have a large group of deliberate small business people with more disposable income. Money the would have otherwise used to pay their expensive fuliza interest.

So, to your question. Does it improve the financial situation of a family? I ask you this, if the have been improving their financial situation on more expensive credit, surely they can manage to do the same on cheaper credit.

All what you have said was also the thinking of Uwezo fund. So what silver bullet does Hustler fund have that Uwezo fund lacked?

 

[Aviator]

Taxes??

Taxes are meant to be spent to run the government, not to give loans. That's why we have a budget.

 

[Denis Young]

Taxes are meant to be spent to run the government, not to give loans. That's why we have a budget.

What is the source of HELB?

 

[Aviator]

Don't those gavaments you woke crowd lionise give their people money all the time through subsidies and tax-breaks?

Have you seen the kind of riots French farmers throw up when their subsidies are delayed?

So why shouldn't the Kenyan hasora get a hand-up from his own govt through affordable credit?

Ni kurogwa mlirogwa ama ni makunyii kubwa inanyonya damu yote inakosa kufikisha oxijen kwa ubongo?

At times you reason like a maggot.
Where does woke come in here?

And then to the real issues. Where does this money come from? Was it planned in the budget that 50bn would be available for lending? Subsidies exist because they are legalized one way or the other, and they are for a common good. This BS of HF is just to excite hapless hustlers.

The HF can only be compared with Safcoms Fuliza

This is the most stupid thing you've written in your two centuries of existence.
Does everyone qualify for fuliza? Do you voluntarily pay fuliza loan or it is deducted at source? Does fuliza have an unsustainable credit rate like the HF? There's a reason shylocks charge exorbitant rates compared to banks, chief reason being the risk. And HF is a more risky monkey business. All logic dictates that the rate be much higher.

The goal is to provide a cheap line of credit for small businesses and take them away from expensive credit like fuliza. What does this do? You will have a large group of deliberate small business people with more disposable income. Money the would have otherwise used to pay their expensive fuliza interest.

I am sure in your extended family, there's someone who could do with this kind of arrangement. I can also bet that you as Denis Young can easily and happily loan 500 to that member without necessarily breaking into a bank. Just a sacrifice of two beers and voila! That family member becomes a billionaire.

Would you be comfortable doing that?
If yes, why not do it?
If not, why?

 

[Aviator]

What is the source of HELB?

The HELB Act.

 

[Denis Young]

All what you have said was also the thinking of Uwezo fund. So what silver bullet does Hustler fund have that Uwezo fund lacked?

Can you even compare Uwezo fund and hustler fund tranche 1? They are not even the same product.

Uwezo fund targeted large groups and had stringent conditions you had to fulfill. So not only was there a lot of corruption, the uptake was poor and people did not bother to pay once they got their share.

 

[Denis Young]

The HELB Act.

Acha mchezo wewe... Hehehe

 

[Denis Young]

At times you reason like a maggot.
Where does woke come in here?

And then to the real issues. Where does this money come from? Was it planned in the budget that 50bn would be available for lending? Subsidies exist because they are legalized one way or the other, and they are for a common good. This BS of HF is just to excite hapless hustlers.


This is the most stupid thing you've written in your two centuries of existence.
Does everyone qualify for fuliza? Do you voluntarily pay fuliza loan or it is deducted at source? Does fuliza have an unsustainable credit rate like the HF? There's a reason shylocks charge exorbitant rates compared to banks, chief reason being the risk. And HF is a more risky monkey business. All logic dictates that the rate be much higher.


I am sure in your extended family, there's someone who could do with this kind of arrangement. I can also bet that you as Denis Young can easily and happily loan 500 to that member without necessarily breaking into a bank. Just a sacrifice of two beers and voila! That family member becomes a billionaire.

Would you be comfortable doing that?
If yes, why not do it?
If not, why?

Okay. So nimpatie 500bob. Afanye biz and he make a profit of 200. Ata tuseme ni grant. How long will it take him to grow his business?

Now give him 500 HF. He makes 200 profit. He pays 501. His credit limit grows to a conservative 700 bob. Now he has 900bob to use unlike the previous example where he has 700bob. It really is that simple.

 

[Aviator]

His credit limit grows to a conservative 700 bob.

Kwa ground, things are different.
It is faster to grow your capital through reinvesting profit than from the credit limit.
Ask anyone who has borrowed and repaid 3 times. My limit still remains the same.

 

[Aviator]

Acha mchezo wewe... Hehehe

Surely, the structure, funds and administration of HELB is clearly defined in the act.
Where is structure, funds and administration hf defined?

 

[Okiya]

Can you even compare Uwezo fund and hustler fund tranche 1? They are not even the same product.

Uwezo fund targeted large groups and had stringent conditions you had to fulfill. So not only was there a lot of corruption, the uptake was poor and people did not bother to pay once they got their share.

Now imagine Uwezo fund with its stringent conditions and poor uptake people still defaulted. What makes you think then hustler fund with easy conditions the default rate will be any lower?

 

[Field Marshal]

At times you reason like a maggot.
Where does woke come in here?

And then to the real issues. Where does this money come from? Was it planned in the budget that 50bn would be available for lending? Subsidies exist because they are legalized one way or the other, and they are for a common good. This BS of HF is just to excite hapless hustlers.


This is the most stupid thing you've written in your two centuries of existence.
Does everyone qualify for fuliza? Do you voluntarily pay fuliza loan or it is deducted at source? Does fuliza have an unsustainable credit rate like the HF? There's a reason shylocks charge exorbitant rates compared to banks, chief reason being the risk. And HF is a more risky monkey business. All logic dictates that the rate be much higher.


I am sure in your extended family, there's someone who could do with this kind of arrangement. I can also bet that you as Denis Young can easily and happily loan 500 to that member without necessarily breaking into a bank. Just a sacrifice of two beers and voila! That family member becomes a billionaire.

Would you be comfortable doing that?
If yes, why not do it?
If not, why?

Asante sana for your polite and well-reasoned response. I did not expect anything less from a woke PoS.

Any way, to the substance.

A gavament, any gavament, is free to pursue any policies or interventions that it thinks are good for it's people. Yes, money is normally budgeted for, but I would expect a woke twat to know that gavament also has drawing rights to the Consolidated Find for everything from emergencies to special programmes.

Your silly arguments remind me of the storm that Kagame caused when he sponsored Arsenal. Woke critics and their wazungu backers wondered where a poor country was getting the funds to sponsor a football team in a developed country. Like the bonobozz that keep asking here why some funds are not used to buy food for them, the same questions were raised of Rwanda.

Surprise surprise. The investment Rwanda had made repaid itself within the year from increased tourism!

The HF may not be the usual way govt does business. It is disruptive and innovative. Why do you think NCBA has written virtually all of it's Mshawi bad debt?

Everything else you have written is utter nonsense so I don't need to respond to it. Suffice to say that about 1.5b out of the 7b borrowed has already been repaid back WITHON 10 DAYS.

That's about 20pc of the loans being repaid Before they are due.

Your woke ass can spin that any way you want...

 

[Field Marshal]

One of the things that irritates me beyond measure is to see people who would otherwise be considered intelligent suspending that intelligence on the alter of prejudice.

Yaani mtu anaanza ku-argue kama hana akili because of politics, for example. It is just unbearable.

The HF is an innovative initiative that is supposed to disrupt the credit system and allow the people at the bottom to access capital. Immediately after independence, Jomo's govt launched similar initiatives by launching govt banks that lent money at concessional rates to Africans to buy shambas and businesses from wazungus and Indians. @Aviator I know for a fact today you are a beneficially of the ADC scheme that Jomo launched.

The result was that Africans, many straight from detention, were able to lift themselves from poverty. Nobody in his right mind argued that govt didn't have any business being involved in business.

Now that we are relatively comfortable middle-class and we're supporting the other political side, we want to shoot down a programme that has lent out more than $70 million to poor people in less than two weeks. Eti govt has no business doing business. Eti at 8 PC the model is not sustainable (Jomo was lending at around 3pc). Eti the initiative will collapse within the year.

Very few govt programmes are meant to generate a profit. They are meant to uplift a country. Any body with a basic understanding of governonce knows that.

Pthoo, shindwe Pepo mbaya! I voted for Baba but I have the intelligence and the insight to know a game-changer when I see one, and the integrity to call it for what it is...