Hustler Fund rewards borrowers with new perks on its first anniversary
National
By
Esther Nyambura
| Nov 30, 2023
The Hustler Fund has registered over 19 million users, disbursed over Sh40 billion and saved over Sh2 billion in a span of one year.
This is according to President William Ruto, who spoke during the fund's anniversary celebrations in Nairobi on Thursday, November 30.
He said that the project no longer needs government funding as it can now run on its own.
Ruto praised the users for their discipline and commitment in repaying their loans on time.
"We had committed that we are ready to spend Sh50 billion to run this program. The good news is that this program is self-sustaining. Those who are borrowing are the same with those who are repaying. With only Sh12 billion we are having this product running, servicing itself and ensuring that Kenyans have access to loans," said Ruto.
Out of the 19 million Kenyans, seven million are active borrowers who borrow and repay their loans in time.
Some 1.2 million of the seven are active borrowers who have borrowed more than five times.
As a reward, Ruto announced that the 1.2 million Kenyans will have a loan limit increment and a matching fund, which the government had promised during the launch of the fund.
The matching fund is a top-up saving which one receives from the government after using Hustler Fund more than five times. The fund will be half of what one has saved.
Kenyans who have borrowed more than 10 times will receive a raise in their limit increment by 100 per cent while those who have borrowed five to nine times will have a 60 per cent raise.
Those who have borrowed between two to five times will have a loan limit increment of 40 per cent.
According to Ruto, this is a way of rewarding those that believed in the project and continue to support it by repaying their loans as required.
Further, those that use the fund as a saving platform will receive a 12 per cent interest from the government by the end of the year.
Ruto said this will be a routine every December 31 and will be awarded to everyone who saves with Hustler Fund from as little as Sh500.
At the same time, borrowers can now withdraw 30 per cent of their savings, the five per cent that is deducted from the loan issued.
However, if one opts not to, the savings will be used to increase their limit in a month's time.
The fund was launched last year 2022 and aims to empower Kenyans economically by providing them with affordable and accessible financial services.