The highly anticipated Hustler Fund by the Kenya Kwanza administration has finally been launched as part of the pledges by President William Ruto to uplift lower income earners or 'hustlers' through lower credit loans.
After approval by the Cabinet, the fund was unveiled on Wednesday, November 30 and will be accessible through loans from a minimum of Ksh.500 to as high as Ksh.50,000 at 8 per cent per annum which translates to a daily rate of 0.002 per cent, five hundred times lower than the normal interest rates offered by lenders in Kenya.
The low interest rate is aimed at mitigating the challenges in credit access faced by Kenyans who own Small and Medium-sized Enterprises(SMEs) who have been blacklisted by Credit Reference Bureaus(CRBs), and in dire need of a financial boost in the economic activities.
Speaking during the launch of the fund at GreenPark in Nairobi, President William Ruto could not hide his joy ,terming it as the equaliser of the economic status of all Kenyans.
"I am happy that from today we shall all be equal as Kenyans. This is the fund that is going to equalise all the people of Kenya so that every citizen can know that they matter and they count," he stated
He recalled the plight of 'hustlers' during his campaign trails throughout the country during the electioneering period , with many calling for accessible loans for business growth especially in the harsh economic times.
"The origins of this fund go back to our numerous trips across the country and everywhere we went Kenyans complained of loans and a lack of money to grow their businesses," said the president.
How to Access The Hustler Fund
The fund is accessible through the USSD code *254# and mobile application platforms of any of the mobile network operators in Kenya(Safaricom, Airtel etc)
Registration then follows where the loan applicant is required to sign up for the find through the USSD code or the application.
The applicant is then required to read and accept the Terms and Conditions for joining the fund after which they enter their mobile money pin for security purposes.
After the above steps, an SMS will be sent to the applicant notifying them of their successful registration and their loan limits.
In the event of a failed registration, the borrower will be notified via SMS and directed on what steps for registration.
To apply for a loan, one must first fulfill various requirements which include:
After fulfilling the requirements , one is required to:
•Dial USSD code *254# or open mobile application.
• Select the loan request option to view the limit, interest, and loan tenure.
• Enter the loan amount and press OK to continue
• Confirm loan details as displayed to continue
• Enter Mobile Money pin
• Receive SMS notifications on Loan allocation with relevant loan information.
In line with President Ruto's plan to inculcate a saving culture among Kenyans, after a loan from the fund is approved, a loanee is set to receive 95 percent of the amount while 5 percent is channelled to the Hustlers Savings Scheme.
The amount from the loan that gives into the Hustlers Savings Scheme (5 percent of total loan) is further divided into long-term and short-term savings with 70 percent channelled to long term saving and 30 percent to short term savings.