Kenyans borrow Sh6 billion from Hustler Fund

According to records, there were 600,000 repeat borrowers of the Hustlers Fund. [Wilberforce Okwiri, Standard]

Kenyans have borrowed Sh6 billion and saved Sh312 million eight days after the Hustlers Fund was launched by President William Ruto.

By the evening of December 8, there were 10,908,502 total transactions and a total repayment of Sh624,313,794 which was over 10 per cent of the money borrowed.

Co-operative and SMEs Cabinet Secretary Simion Chelugui said the fund has received good reception among Kenyans.

"I want to challenge everyone interested to apply and make good use of it. Millionaires started here," said Mr Chelugui in an interview with the Standard.

The CS noted that the repayment was at 10 per cent of the cash borrowed and this will improve with continued borrowing.

He said the savings had hit Sh312 million, which could be compared to 10 per cent of what the National Social Security Fund (NSSF) achieved in 50 years.

According to records, there were 600,000 repeat borrowers.

Apart from personal finance, Hustlers Fund comprises MSE and Startup loans. Kenyans can access the fund through the USSD code *254#.

Chelugui said timely repayment would increase the borrower's credit score and make them eligible for higher limits.

"The more you repay on time, the more you can borrow. Early repayment means that borrowers repay with less interest charged which is charged on a pro-rata basis," he explained.

The CS noted that early repayment also enhanced the growth of wealth by borrowers who put their money into productive use. "The more you repay on time, the more money you can borrow, and the more you grow your business," he said.

"Timely payment makes one qualify for a repeat loan at a higher limit and this helps you to grow their savings which is 5 per cent of every single transaction amount," he added.