Kenyans borrow Sh17b from Hustler Fund kitty since its launch last year
Kenyans have borrowed more than Sh16.8 billion from the Hustler Fund since it was launched on November 30, Co-operatives and SMES Cabinet Secretary Simon Chelugui (pictured) said yesterday.
Chelugui observed that Kenyans had demonstrated a high appetite to borrow from the fund 65 days since it was launched, adding that the rate of borrowing will have exhausted the fund in the coming months.
“Since inception of the fund, 18.5 million Kenyans as at yesterday had borrowed Sh16.8 billion and repaid Sh8.4 billion. And Sh844.2 million saved which is 5 per cent of the total borrowed,” he said
This, Chelagui said is a great confidence to the government initiative to enhance financial access in the local money market.
The CS spoke during the inaugural Sacco CEO’s roundtable forum organised by the Co-operative Bank of Kenya,
He confirmed President William Ruto will later this month launch the second phase of the fund.
Out of the 18.5 million borrowers, 5.6 million subscribers have borrowed multiple times, pointing to growing demand for the credit facility.
Chelagui said the high rate of borrowing indicates high appetite of funds by Kenyans to finance their enterprises as well as new opportunities to meet their financial obligations. The second phase will cater for Saccos and other small institutions to give all Kenyans an equal opportunity to borrow at a small interest to boost their businesses.
Second phase
“The second phase of the Hustler Fund will give borrowers access to between Sh100, 000 and Sh2.5 million. I wish to encourage Saccos to apply to disburse the funds in the second phase,” Chelagui said.
He explained that Saccos can provide even more support to micro, small and medium enterprises (MSMEs) and help them access the financing they need.
Chelugui called on Saccos to partner with the Government with a view to expedite lending of the fund to more Kenyans. He observed that by investing in MSMEs and providing them with the financing they stand to grow and can help to create wealth and spur economic development.
