Cooperatives and MSMEs Cabinet Secretary Simon Chelugui said in a statement that the review was prompted by the tremendous growth seen in the first two and a half months of the year.
Chelugui stated that the total borrowings “have generated a lot of interest among Kenyans.”
“With 18.8 million Kenyans having subscribed to the fund since its inception, the 100 percent increase is also in line with the President’s announcement last week.” said the CS.
The CS, on the other hand, stated that the increase will only apply to those who have borrowed repeatedly and dutifully repaid their loans.
“As a result, the increment will be implemented on a case-by-case basis… increment is based on individual’s record,” he explained.
Those whose limits have been raised, he claims, have seen them increase from Sh3,000 to Sh6,000. On the other hand those who previously received Sh5,000 are now entitled to Sh10,000.
Every four months, the Fund will be reviewed, and individuals will be rated based on their repayment history.
The CS stated that by the middle of this year, those with the highest limits will be approaching Sh50,000. This is the maximum limit for this product.
He revealed that the National Treasury had already disbursed the Sh1.8 billion required for the trust accounts.
“We have wallets held in two banks, KCB Bank and Family Bank. They are the ones who are now injecting liquidity into borrowers’ mobile money wallets,” he explained.
The limit according to Chelugui will be determined by how frequently one borrows and repays their loan facility.
