President William Ruto has announced an increase in the borrowing limit for the six million Kenyans who have opted into the credit facility.
The President announced during the 50th anniversary of the Kenya National Police Sacco that some of the six million Kenyans will have access to double their current credit, while others will have their current credit limit increased by up to 80 percent.
The six million are those who have consistently repaid their loans.
“We have identified 6 million people to increase their limit starting tomorrow,” said Ruto.
According to the President, the fund, which was established in November of last year, has attracted over 18 million people, who have borrowed KES 17 billion and are repaying their loans on a regular basis.
800,000 users have defaulted on their loans, owing more than the loan’s term.
“After more than 30 days of default, the borrower loses all the credit scores accumulated, and their Hustler Fund account will be frozen.”
In the last two months, mobile loan users saved KES 850 million.
Ruto announced during a press conference at the start of the new year that the Hustler Fund’s credit limits will be increased on January 30.
Multiple borrowers who have been servicing their loans will benefit, according to him.
Ruto stated in a media interview broadcast on all local TV stations that his goal is for individual borrowers to increase their credit limits to a minimum of KES 50,000.
The President also announced that each Hustler Fund borrower will be assigned a financial grade, with the government planning to review each user’s credit limit every four months.
Savings and Credit Co-operative Societies (SACCOS) in the country will soon be able to join the Hustler Fund, as the president announced that the government will roll out microcredit for SACCOs later this month.
During the fund’s launch last year, the president stated that Groups, Chamas, and cooperatives will be eligible for credit facilities of up to Kes10 million, while Saccos will be eligible for credit facilities ranging from Kes10 million to Kes100 million from the Hustler Fund.
