President William Ruto announced on Wednesday, December 7, that the amount disbursed by the Hustler Fund has crossed Ksh5 billion.
Speaking during the launch of housing projects in Mlolongo, Machakos, the Head of State noted that 13 million Kenyans have so far registered for the loan product, which is part of the Kenya Kwanza administration’s financial inclusion initiative.
“Tayari tuko na watu millioni kumi na tatu ambao wamejiunga na hustler fund, tayari tumepatiana billioni tano katika huo mpango,” he stated.
Loosely translated, “So far 13 million Kenyans have registered for the hustler fund. We have also issued out Ksh5 billion so far.”
He equally urged Kenyans on the scheme to repay their loans on time so as to increase their credit scores.
“Nataka kuambia wakenya kwamba ukipewa hio mpango ulipe ndo uongezewe ile utakopa the next day (I would like to urge Kenyans to repay their loans so as to increase their credit score next time they borrow,” he stated.
The President also revealed that the total savings at the Hustler Fund had risen to Ksh250 million.
Further, the commander-in-chief announced plans to launch a pension scheme where registered members will be able to save their money.
He expressed optimism that the newly launched fund will collect more in savings than what National Social Security Fund (NSSF) is currently collecting.
The loan can be accessed through USSD code *254# and the Hustler Fund application.
Earlier, President Ruto praised the Hustler Fund program as a game changer in uplifting those at the bottom of the economic pyramid.
The President said it was different from other financial plans that were rolled out before.
Firstly, while explaining the significance of the fund, the President gave five reasons why it was more beneficial to Kenyans compared to Uwezo Fund, Youth Fund, and Women Enterprise Fund.
“We have around eight million people who have been blacklisted by all lenders. They are not allowed to borrow anywhere.
“Hustler Fund will give them a second chance to borrow again. Anyone who had been chased from other apps will have a chance to borrow money again,” he said.
Secondly, Ruto explained that Kenyans would not require any security for the money.
“When you borrow from another lender, you need to apply, look for guarantors, you have to know someone, and get security, but Hustler Fund does not require you to look for all those things.
“It doesn’t require any committee and you should not know anyone to access it. For example, Youth Fund, Women Enterprise Fund, and others require you to go to committee, get security, but with Hustler Fund you will just need your phone and you get the money,” he added.
Thirdly, the President said the fund would be given at a low-interest rate of eight per cent (8%) per annum.
“The interest is very low. Others charge 1% per day. But Hustler Fund will charge 8% which will enable us to continue with it.
“This means Hustler Fund will charge 0.002 per cent per day down from the 1% that others charge daily. So the fund is 500 per cent cheaper than the cheapest funds available in the market,” he said.
Fourthly, according to the commander-in-chief stated that the fund would allow Kenyans to save for their pension.
“Hustler Fund will enable you to save for your pension. That means your requirement will be well taken care of.
“Once you borrow, there will be an amount that will be deducted for your saving plan. The government will merge what save at a ratio of 2:1. If you save 500 per month, which translates to 6000 per year, the Government of Kenya will give you 3000 per year. We want to ensure that every Kenyan is saving money every year,” he said.
The President said loan defaulters would not be listed on CRB, as they will have another chance of reborrowing.
“The defaulter can repay the loan at once or in instalments and begin borrowing again after full repayment,” Ruto said.
