President Ruto: 13 Million Kenyans Have Registered with the Hustler Fund

President Ruto says 13 million Kenyans have so far registered with the Hustler Fund, which was launched on November 30th.

Speaking during the ground-breaking of the Mavoko Affordable Housing project in Machakos County on Wednesday, the president said loans amounting to Sh5 billion have been disbursed while applicants have saved Sh250 million under the Hustler Fund scheme.

Ruto pointed out that the savings are a clear indication that the Hustler Fund will fetch in more money than what the National Hospital Insurance Fund (NHIF) is currently collecting, urging Kenyans to embrace saving culture.

“The money we are borrowing from China and all over the place is money saved by the people of that country. It is this money that is saved that is critical for helping develop our country,” he remarked.

During the launch of the fund, Ruto said the fund will replace the collateral system built around title deeds and log books to access loans and will provide a new start for over eight million Kenyans who cannot access credit due to their bad credit history.

The Hustler Fund, a digital financial inclusion initiative by the Kenya Kwanza administration, provides personal loans of between Sh500 and Sh50,000 at an annual interest rate of 8%, and the repayment period was capped at 14 days.

When a customer borrows, the approved loan is sent directly to their mobile money account, deposits 95% of it in their mobile wallet, and the remaining 5% in their savings account. The 5% that goes toward the savings plan is split into 30% for short-term savings and 70% for long-term (pension) savings.

If the loan is not repaid in 14 days, the customer’s credit rating is affected and the customer is given 15 more days and if the loan is not repaid, the interest rises to 9.5% per year.

After more than 30 days of default, the borrower loses all the credit scores accumulated and the Hustler Fund account is frozen. 

When fully rolled out, the fund will offer four different products namely start-up loans, micro-loans, SME loans, and personal loans.