President Ruto Officially Launches Hustlers Fund, Repayment Period Set at 14 Days

President Ruto on Wednesday launched the first phase of the Hustlers Fund, one of the key campaign pledges of the Kenya Kwanza administration.

To access cheap loans under the Hustlers Fund, Kenyans will only need to dial *254# or use the mobile app platforms of mobile network operators, Safaricom, Airtel and Telkom starting December 1st.

The fund will offer four different products namely start-up loans, micro-loans, SME loans, and personal loans, with a 14-day repayment period and an annual interest rate of 8% calculated per day.

This means a customer who borrows Sh500 from the fund will pay back Sh501.53 after 14 days, representing Sh1.53 in interest.

When a customer borrows, the approved loan is sent directly to their mobile money account, deposits 95% of it in their money wallet, and the remaining 5% in their savings account. The 5% that goes toward the savings plan is split into 30% for short-term savings and 70% for long-term (pension) savings.

To be eligible, one must be a Kenyan citizen 18 years and above, have a valid ID card, have a registered mobile phone number with Safaricom, Airtel or Telkom, have a mobile money account: Mpesa, Airtel Money or T/Kash, and the sim card must have been in use for more than 90 days.

If the loan is not repaid in 14 days, the customer’s credit rating is affected and the customer is given 15 more days and if the loan is not repaid, the interest rises to 9.5 per cent a year

After more than 30 days of default, the borrower loses all the credit scores accumulated and the Hustler Fund account is frozen. There is no CRB listing and this default does not affect the person’s credit rating with other creditors.