The government has increased the financial inclusion fund (Hustler Fund) borrowing limit by 100%.
According to a statement from Cooperatives and MSME Development Cabinet Secretary (CS) Simon Chelugui, the substantial increase is due to the impressive growth of the Fund since its launch in November 2022.
The CS also mentioned that the increase was prompted by a directive issued by President William Ruto on February 3. However, CS Chelugui clarified that the increase would only affect those who have borrowed multiple times and have consistently repaid their loans promptly. As a result, the changes will be implemented case-by-case, with each individual’s borrowing history being considered.
The frequency of borrowing and repayment determines whether a borrower is eligible for an increase in their loan borrowing limits. Additionally, the borrowing limits will be evaluated and adjusted every four months to give borrowers greater access to funds.
The Hustler Fund will be reviewed every four months where individuals will be rated according to their repayment history.
Cooperatives and MSME Development Cabinet Secretary – Simon Chelugui
The loan limit for those currently receiving KES 3,000 will be doubled to KES 6,000, and this new limit applies to all borrowers.
Additionally, CS Chelugui announced a new Hustler Fund called ‘Micro Credit’, which will provide larger loans ranging from KES 250,000 to KES 2.5 million for Saccos, Startups, and groups to borrow on behalf of their members.
Since the Financial Inclusion Fund launch, 18.8 million Kenyans have subscribed, taking out 30 million loans to KES 18.5 billion. Part of this amount, KES 10 billion, has been repaid, and KES 912 million has been deposited in savings accounts. Approximately 6.1 million people have borrowed twice.
CS Chelugui expressed confidence that the Hustler Fund will continue to surpass government projections and attract more “hustlers” by providing affordable credit to help grow their businesses. He also stated that the Fund has already surpassed financial sector records in under three months, and many borrowers have shared positive stories of using their loans to stabilize and expand their businesses.
The Hustler Fund is kept in KCB Bank and Family Bank wallets, which inject liquidity into borrowers’ mobile money wallets.
Read also: Kenyans Repay KES 7.7 Billion Hustler Fund Loan, Phase two Set to Roll out in February
