17 Million Kenyans Borrow Sh10.6 Billion from the Hustler Fund

The Hustler Fund has disbursed loans totaling over Sh10 billion since its launch on November 30th, according to the latest figures from the government.

Cooperatives and MSMEs Cabinet Secretary Simon Chelugui said 17 million Kenyans had borrowed Sh10.67 billion from the fund as of December 23rd, Sh3.55 billion had been repaid and Sh533 million channeled to the savings scheme.

Nairobi County leads in the uptake of the Hustler Fund having recorded 1.4 million subscribers, who have borrowed over Sh1.14 billion since its rollout. It is followed by Kiambu, Nakuru, Machakos, and Meru while Lamu, Mandera, Isiolo, Marsabit, and Samburu are in the bottom five.

The program is popular among the younger demographic, with only five percent of borrowers aged 60 and above.

The Hustler Fund, one of President Ruto’s key campaign promises, is aimed at supporting small businesses and start-ups.

Under the first phase of the fund, Kenyans can take personal loans of between Sh500 and Sh50,000 via USSD code *254#, with a 14-day repayment period and an annual interest rate of 8% calculated per day.

When a customer borrows, the approved loan is sent directly to their mobile money account, deposits 95% of it in their money 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. 

Ruto’s administration intends to roll out the second phase of the Hustler Fund targeting three million small businesses that will access loans of between Sh100,000 to Sh2.5 million.