Hustler Fund is set to deliver affordable loans to micro, small and medium enterprises (MSMEs) as promised by His Excellence the President Dr. William Samoei Ruto during his campaign time.
The official launch of hustler fund was on 30th November,2022.
Hustler loans – Loan Limits, Disbursement and Interest Rate
The fund will be allocated a total sum of KES 50billion (US$419million) which all go to the hustlers across the nation in the form of affordable loans in amove to achieve the bottom up agenda.
Loan amounts disbursed to each applicant will vary depending on the customer’s business needs. It will be enough money at least to make business grow and create employment and empower both youths and women in Kenya.
The minimum loan amount will be sh. 500 while the maximum hustler fund loan will be sh. 50,000
How loans will be disbursed to borrowers? A hustler fund USSD code and a hustler fund mobile app will be introduced and the money will be disbursed via mobile money wallets to make it easily accessible. The President already talked to the participating major mobile loan companies – Safaricom, M-Pesa, M-Shwari (NCBA Bank), KCB M-PESA.
Upon parliament approval borrowers will be able to get hustler loans via M-PESA, M-Shwari or KCB M-Pesa , Airtel money and T-Kash.
Hustler loans interest rate will be 8% , a single digit. The President promised to keep the interest rate low to make the loans affordable to everyone who is a hustler.
One digit interest rate means the loans will be charged from 1% to 9% ( (confirmed 8% ) . It should not go beyond 9%.
Hustler Fund loans hit Sh16bn in two months
Borrowers who have been making timely payments of the Hustler Fund mobile loan will access higher limits in the second phase to be rolled out next month.
Cooperatives and Micro and Small Enterprises Cabinet secretary Simon Chelugui said the plan to unveil lending through groups and savings and credit cooperative societies (saccos) is on course.
Speaking during Yetu Sacco’s annual general meeting in Meru on Wednesday, Mr Chelugui said more than Sh15.9 billion in loans had been disbursed, adding that more than 18.4 million Kenyans have subscribed to the Hustler Fund and repaid over Sh7.7 billion since its inception.
He said 5.6 million subscribers have borrowed multiple times pointing to the growing demand for the credit facility.
“We are finalising development of the second phase of the Hustler Fund that will see borrowers access between Sh100,000 and Sh2.5 million.
“We are encouraging saccos to apply to disburse the funds in the second phase,” said Mr Chelugui.
His Agriculture counterpart Mithika Linturi and Cooperative PS Patrick Kilemi accompanied him.
Mr Chelugui said President William Ruto’s administration was keen on expanding the cooperative sector by supporting the establishment of cooperatives at the ward level.
He said as part of the effort to boost the saccos, plans were at an advanced stage to include them in the national payment system as well as establish a central liquidity system.
“So far, about 52 out of the 360 saccos under Sasra have shown interest in having a central liquidity system. This will enable saccos clear cheques among themselves without using banks. We are also working on a credit guarantee scheme to protect members from any eventualities,” Mr Chelugui said.
“I urge saccos to diversify their products and support the government housing project to close the gap in the housing sector. Saccos can work with the Kenya Mortgage Refinance Corporation to access affordable financing for their members.”