President William Ruto has officially launched the second product of Hustler Fund named the Hustler Group Loan.
Chamas and other financial groups that enrol to the fund will receive a minimum of Ksh. 20,000 to Ksh. and a maximum of one million.
Speaking during the 60th Madaraka Day celebrations in Embu Thursday, the President said the fund is a Financial Inclusion Fund, which is aimed at facilitating Kenyans to access funding through groups.
“I am glad that this launch of the group loan product is taking place against the backdrop of the phenomenal success of the Hustler Fund Personal Loan product. I expect that this product will encounter even greater appetite from the market.”
According to the President the credit score of an individual will determine the amounts one can access, and the group one is enrolled in will act as the collateral.
He said: “This means that your conduct as an entrepreneur, and as a member of community will begin to define your creditworthiness. But there will also be opportunities to rehabilitate defaulters if they demonstrate sustained behaviour change.”
Fintech
The President said the Hustler Fund turned around the country’s fintech, transforming it from a predatory ecosystem to a more responsible one.
As a result, he says, Kenya’s digital economy has received a tremendous shot in the arm as demonstrated by reports that Safaricom alone has enrolled at least 2 million new subscribers into its financial ecosystem courtesy of the Fund.
“Today, as we celebrate progress in achieving economic freedom, we also celebrate our digital economy, powered by our famous fintech community. Kenya’s legendary spirit of enterprise has entered the digital space.” He said.
Adding that: “Kenyans responded to this promise of economic freedom in unequivocal terms.”
Due to the high uptake of the find, the total number of digital transactions stands at 42.5 million through which 20.2 million Kenyans have accessed nearly Ksh.30 billion, and repaid Ksh.19.7 billion, with 7 million being repeat customers.
While lauding the fund’s transparency, President Ruto noted that no funds have been stolen through corruption.
“Not a single shilling has been stolen through corruption, and borrowers do not need to know anyone, bribe any official or go through complex bureaucratic procedures to access the Hustler Fund.” Noted President Ruto.
Adding that: “They only need a device, a little airtime and a few minutes, and they are able to get money wherever they are.”
