Ruto's Administration Raises Loan Limits for the Hustler Fund

President Ruto's administration has raised the borrowing limits of the financial inclusion fund, popularly known as the Hustler Fund.

Cooperatives and MSME Development Cabinet Secretary Simon Chelugui said on Thursday that the increase was a result of the tremendous growth recorded since the fund’s launch in November 2022.

The raise is also in response to a directive issued by President Ruto on February 3rd.

CS Chelugui said only Kenyans who have borrowed repeatedly and dutifully repaid their loans in time will enjoy the increased limits.

"The Hustler Fund will be reviewed every four months where individuals will be rated according to their repayment history," Chelugui said in a statement.

Under the changes, those with a loan limit of Sh3,000 will receive Sh6,000, and this applies to all limit caps.

At the same time, Chelugui announced the government will launch a new Hustler Fund product dubbed 'Micro Credit’ targeting Saccos, startups, and groups by allowing them to borrow on behalf of their members. The loan limit for the Micro Credit will range from Sh250,000 to Sh2.5 million.

About 18.8 million Kenyans have subscribed to the Hustler Fund since its launch, borrowing Sh18.5 billion in 30 million transactions. Sh10 billion of the borrowed amount has been repaid while Sh912 million has been deposited in the savings account.

"So far, the Hustler Fund has surpassed all projections and existing records in the financial sector —in just under three months," said Chelugui.

"We have received positive stories from borrowers who have properly utilized their loans to stabilize and expand their business. This is very encouraging."

The fund is accessible through the USSD code *254# and the mobile application platforms of any of the mobile network operators in Kenya and has no processing fee.

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.

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 from 8% to 9.5% per year.

After more than 30 days of default, the borrower loses all the credit scores accumulated and the Hustler Fund account is frozen.