Kenya Kwanza’s Hustler Fund has changed over time.
From a grant during campaign seasons to a loan product with single-digit interest rates to its current form as an 8% credit facility with a 50%-mandated savings component.
The cabinet has adopted the legislative and institutional framework to support the formation and execution of the Financial Inclusion Fund (Hustlers Fund).
The Fund according to President William Ruto, will encourage a savings culture while catalyzing sustainable development.
Four items make up the fund’s structure: personal finance, microloans, SME loans, and start-up loans.
Cabinet praised the regulatory agencies’ assistance in guiding the creation of the ground-breaking financial product, including the Central Bank of Kenya, Financial Intermediaries and Financial Institutions, and Mobile Network Operators.
The implementation of the Administration’s signature pledge is tipped to liberate the people of Kenya from the bond of predatory lending.
As part of the first phase of this roll-out that is expected to be unveiled and launched to the nation on 30th November 2022; the loan limits will be a minimum of Ksh. 500 up to a maximum that will be determined by the borrower’s credit score, and capped at Ksh. 50,000.00.
As the first single-digit credit product in the Country and the region, the loan interest rate will be capped at 8% per annum computed on a pro-rated basis.
In the 68-page manifesto, the Fund is mentioned eight times as a solution to issues ranging from National Health Insurance Fund enrollment, implementing the digital superhighway, funding musical talent, assisting boda bodas in purchasing electric vehicles and motorcycles, to curing predatory lending.
The Hustler Fund would also provide funding for table banks, chamas, merry-go-rounds, merry-go-rounds run by women, and financial inclusion for the handicapped.
The Uwezo Fund was established in 2014 by retired president Uhuru Kenyatta to aid businesses run by young people, women, and people with disabilities.
