Hustler Fund: Ksh22B disbursed so far
The government lending facility Hustler Fund has disbursed at least Ksh22 billion since inception, Co-operatives and MSMEs Development cabinet secretary Simon Chelugui has announced.
The fund currently has at least 6.5 million registered Kenyans, with repayments standing at Ksh13 billion.
Chelugui spoke during the launch of the countrywide sensitisation and mass registration of MSMEs in Preparation for the Group Based Hustler Fund Product Launch.
"Given the significance of MSMEs as a source of employment, hurdles to accessing funding become obstacles to poverty reduction and economic progress. They are faced with two key financing y obstacles: accessibility and affordability. The (Hustler) Fund was created to empower the people at the bottom of the pyramid, free low-income citizens from the bondage of loan sharks and provide them with the financial security they deserve," Chelugui stated.
The personal finance product offers between Ksh500 and Ksh50,000 at an interest rate of 8% per annum.
Hustler Fund for groups
Chelugui also announced that the government is planning to launch the Group Micro Loan Product targeting MSME collectives.
"Through registration, Micro and Small Enterprises are able to register their individual businesses, register their MSE Associations, and finally register their Micro and Small Enterprise Umbrella Organizations, and be issued with a certificate. Through this initiative, the MSMEs contribute to the provision of a comprehensive database that will inform inter- and intra- government projects geared towards the promotion and development of the sector," he added.
"It is therefore critical that we double our efforts as far as registration of these collectives is concerned to ensure they benefit from the Hustler Fund to grow their businesses," he added.
The event also saw the Micro and Small Enterprises Authority (MSEA) sign an MoU with the Kenya National Federation of Jua Kali Association (KNFJKA) on collaboration towards the promotion and development of Micro and Small Enterprises under KNFJKA across the country.
