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Facebook posts in Kenya have shared a picture of a text message purportedly from mobile money service M-Pesa warning users of the government’s newly launched low-interest credit scheme that they risk imprisonment if they default on their payments. But the claim is false; the message has been fabricated and does not match M-Pesa’s standard messaging style. An official at Safaricom, the company that operates M-Pesa, confirmed to AFP Fact Check that the message was fake. Penalties for loan defaulters include higher interest rates but not jail time. A screenshot of a text message purportedly sent by M-Pesa confirming to a user that they had received 47,500 Kenyan shillings (about $385) from the Hustler Fund Kitty was shared in multiple Facebook posts (see here , here and here ) days before the fund was officially launched on December 1, 2022, by Kenya’s President William Ruto. The message ended with a purported warning: Default on payment, and you will be taken to Kamiti. Kamiti is a maximum-security prison in Kenya. Screengrab of the false Facebook post, taken on December 7, 2022 The so-called hustler fund is a low-interest credit scheme allowing Kenyans to borrow up to 50,000 shillings. Interest is an annual eight per cent, charged daily, with capital and interest repayment in 14 days. The fund was a pillar of Ruto’s election campaign this year. Ruto styled himself as a self-made businessman eager to boost access to financial services for the country’s poorest citizens. On November 11, 2022, Kenya’s treasury published draft regulations for the scheme's custodians who are liable to a fine not exceeding 10 million shillings or a term of imprisonment not exceeding five years, or to both if guilty of misappropriating funds or similar financial offences. However, a misinterpretation of the regulations sparked concern about the risk of defaulting borrowers being thrown in jail. Around the same time, the alleged M-Pesa text message began circulating on social media. However, the screenshot is a hoax. Not from Safaricom Safaricom spokesman Chris Karanja said the message was not from Safaricom. AFP Fact Check received sample messages from a subscriber granted a hustler fund loan and spotted differences with the screenshot making the rounds online. In the manipulated image, the money was purportedly deposited by the Hustler Fund Kitty while M-Pesa's message refers to the Hustler Fund. The latter uses a 24-hour military time in their messages while the false screenshot shows a 12-hour clock. Other differences include the date format, lack of spacing and punctuation. There is also no threat of jail time in the message from M-Pesa. Screenshots comparing message a subscriber of hustler fund received from M-Pesa (L) and the message circulating in the false Facebook post (R) Jail penalty fr On November 18, 2022, Treasury Minister Simon Chelugui clarified that the proposed jail term mentioned in the regulations applies to custodians of the fund and not loan defaulters. The penalties outlined in the regulations target fund officials who may embezzle or misappropriate or misapply the funds, Chelugui said during a press briefing. While borrowers will not be jailed, the interest rate for the loan amount will increase after 14 days if repayment is still outstanding, according to the hustler fund's terms and conditions .
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