NAIROBI Kenya, Feb 22 – The Hustler Fund kitty has so far disbursed Sh19 billion, and the number of Kenyans who have opted for the fund stands at 18 million in the two months since it was launched.
Simon Chelugui, Cabinet Secretary for Cooperatives and Micro, Small, and Medium Enterprises, stated that Hustler Fund lenders have already paid back Sh10 billion.
Chelugui stated during the Annual General Meeting of the Kenya National Police DT Sacco that Kenyans have saved Sh 977 million over the last two months through the fund kitty.
“As of 9 o’clock today this morning, we have disbursed 19, 605,419,802, and payment received is 10,605,775,060 shillings,” he said.
“The number of Kenyans who have opted in for the Kitty are 18, 903,017 and the savings made through this initiative by Kenyans in their accounts so far is 977Million shillings.”
Chelugui said that to compete with commercial banks that have long viewed small merchants as dangerous borrowers, the loan limit would be raised to Sh2.5 million for the second phase of the fund’s launch in March.
The second phase will see savings and credit cooperative societies start to access ‘Hustler’ loans.
President William Ruto’s new economic order, which intends to address unemployment and the lack of possibilities for low-income workers through accessible credit, includes the financial inclusion fund as a significant component.
Besides credit, the fund also has a built-in savings component targeting Kenyans outside formal employment, supported by partial contributions from the state, where taxpayers will match Sh1 for every Sh2 contributed, capped at Sh3,000 annually.
To be eligible for the fund, one must be a Kenyan citizen aged 18 or older with a valid identification card and a registered mobile number with mobile network providers like Safaricom, Airtel, and Telkom.
One will also be required to have a mobile money account that is either Mpesa, Airtel Money, or Tkash, and the sim card must have been in use for more than 90 days.
The Hustlers Fund identifier is the ID number; hence, one customer cannot use more than one number to borrow.
Additionally, savings are secure even if a mobile device is lost because the Hustler Fund account is PIN-protected. Once the SIM card is replaced, access to the account will be restored.
The first phase of the Hustler Fund was launched on November 30 last year to ease access to credit, albeit in small amounts ranging from as low as Sh500 to a high of Sh50,000.
