New milestone as Hustler Fund loans hit Sh10b
The Hustler Fund has registered another milestone, with the latest figures showing that the amount disbursed, so far, crossed the Sh10 billion mark yesterday, exactly three weeks after it was launched.
Co-operative and MSME Development Cabinet Secretary Simon Chelugui (pictured) said another feat was achieved in the past 24 hours after debt repayment hit Sh3.2 billion, translating to 30 per cent.
The figures indicate that Kenyans borrowed 33,798,952 million between 12 am and 9 am yesterday, hence pushing the amount disbursed from Sh10,142,987,170 to Sh10,176,786,122, while repayment grew from Sh3,105,218,296 to Sh3,134,962,405. Savings have also crossed half a billion, standing at Sh508,828,009 at 9 am yesterday.
A total of 18.5 million transactions have been recorded so far, with 17 million Kenyans having been registered. The personal finance product was launched by President William Ruto on November 30.
Yesterday, Chelugui said the President would launch another product with a bigger portfolio in February. Through Micro-business, SMEs and Startups, Kenyans will be able to access cheap loans from Sh100,000 to Sh2.5 million.
It is anticipated that the Hustler Fund will enable small and medium enterprises (SMEs) to access cheap credit.
“The second product of microloans will be unveiled in February 2023 by His Excellency the President, and will target groups, chamas and co-operatives,” said Chelugui.
The high-limit Hustler Fund will target youth and women-led businesses that struggle to raise capital to start and scale up their businesses. Kenyans can access personal loans through their mobile phones via a designated USSD code. Loans are available at a minimum of Sh500 and a maximum of Sh50,000.
The Hustler Fund was the biggest campaign pledge by the Kenya Kwanza coalition and, yesterday, Chelugui described the implementation of the fund as impressive, noting that Kenyans were steadily meeting their obligations.
He reiterated that the Hustler Fund was 100 per cent mobile phone-based, noting that there was no secretariat or committee managing the fund.
“We don’t have committees or directors. It is only you and your phone,” he said. Obligation to repay “You just get the money by pressing the buttons in yours.
But you have an obligation to pay back after borrowing because that is the only way you can enhance your credit score,” he stated. He added that the Hustler Fund was designed to cure a properly diagnosed problem facing many Kenyans, particularly regarding predatory digital lenders.
“Many Kenyans have suffered at the hands of these lenders with very high-interest rates,” said Chelugui. “They are extremely exploitative. So, this is a government initiative to help ordinary mwananchi to grow financially,” he said.
