The Hustler Fund has effectively fulfilled its primary objective by ensuring Kenyans have access to affordable credit.
One year later, the fund has disbursed KSh39.7 billion to 21.8 million people and mobilised KSh2 billion in savings. Total repayments stand at KShs 28.75 billion.
Going forward, President William Ruto said Kenyans will now be able to borrow more as the fund increases borrowing limits by up to 100 per cent.
“Additionally, for those who have demonstrated a commitment to saving, and your savings exceed your loan limit, we will double your credit limit,” he said.
He made the remarks on Thursday during the first anniversary celebration of the Hustler Fund at the Railway Club grounds, Nairobi.
To make it possible for every Kenyan to have a chance in seeking financial credit, the government changed policy from blacklisting debtors to repairing their creditworthiness. Consequently, 7 million Kenyans were moved from CRB. Now, two million are now active borrowers of the Hustler Fund.
President Ruto said the government will now match contributions to borrowers’ long-term savings.
“For every KSh2 you save, the government will contribute KSh1 up to a maximum of KSh3,000,” he said.
The Head of State said Hustler Fund borrowers will get dividends on their savings at 12 per cent every 31st December beginning this year.
He said for phase two of the Hustler Fund, the government will reorganise, register groups and set what they can borrow to between KSh200,000 and KSh1 million.
The goal, he explained, is to further boost micro, small and medium-size enterprises to broaden opportunities for the people, alleviate unemployment and eradicate poverty.
Deputy President Rigathi Gachagua lauded Kenyans for using the fund in income-generating projects and uplift their lives.
Present were Cabinet Secretary for Cooperatives and MSEs Simon Chelugui, PS for SMEs Susan Mang’eni and Nairobi Deputy Governor Njoroge Muchiri, among others.