Kenyans Borrow Sh2.9 Billion, Save Sh147 Million Under Hustler Fund Scheme

The Hustler Fund kitty has disbursed a total of Sh2.9 billion in personal loans to Kenyans as of Sunday afternoon, according to data released by Cooperatives and MSMEs Cabinet Secretary Simon Chelugui.

Chelugui further disclosed that 8.4 million Kenyans have so far registered for the fund, with a total of five million transactions already made. Borrowers have saved Sh147.21 million under the Hustler Fund scheme, while a total of Sh129.1 million has been repaid.

President Ruto launched the first phase of the Hustler Fund on November 30th to give Kenyans access to collateral-free cheap loans to boost their businesses.

Under the first phase of the fund, Kenyans will access personal loans of between Sh500 and Sh50,000 via USSD code *254#, with a 14-day repayment period and an annual interest rate of 8% calculated per day.

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 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. There is no CRB listing and this default does not affect the person’s credit rating with other creditors.