President William Ruto has announced a significant milestone for the Hustler Fund, officially known as the Financial Inclusion Fund, during a presidential town hall dialogue at the Kenyatta International Convention Centre (KICC). The borrowing limit for the fund has been tripled in response to overwhelming public demand, a move designed to empower more Kenyans to access affordable credit for entrepreneurial ventures.
Addressing Borrowers’ Needs
President Ruto emphasized that the decision to increase borrowing limits was driven by feedback from borrowers. Many had reached their borrowing ceilings and expressed a desire for more financial support. To address this, the government introduced a new product called the “Bridging Loan.”
The enhanced borrowing limits will see well-performing borrowers enjoy a threefold increase in their credit limits. For instance, individuals previously capped at KSh 50,000 can now access up to KSh 150,000. This adjustment will benefit over 1.5 million borrowers, with limits tailored to categories ranging from a 1.5x to 3x multiplier effect.
Extended Loan Repayment Period
In addition to higher credit limits, the repayment period for loans has been extended from 14 to 30 days. The extension is a response to borrowers who found the initial two-week window too restrictive. The move is expected to benefit four million defaulters, providing them more flexibility to reorganize their finances and repay loans on time.
Borrowers who defaulted under the 14-day repayment period will be reassessed over the next two months. Their credit scores, categorized into nine bands ranging from A1 (very good) to C3 (very poor), will determine their eligibility for inclusion in the Bridging Loan program.
“This feedback from borrowers is essential to creating a sustainable ecosystem,” President Ruto said. “The credit score we are assigning will serve as their new collateral, enabling inclusivity and financial empowerment.”
Achievements of the Hustler Fund
Since its launch on November 30, 2022, the Hustler Fund has attracted 24 million borrowers, including eight million regular borrowers and two million categorized as “very good.” To date, the fund has facilitated over 42.5 million transactions, with 20.2 million Kenyans accessing loans totaling KSh 30 billion. Remarkably, KSh 19.7 billion of this amount has already been repaid, underscoring the fund’s impact on financial inclusion.
President Ruto also took pride in the fund’s integrity, highlighting that not a single shilling has been lost to corruption.
Support for Enterprises
On June 1, 2023, the Hustler Fund expanded its scope with the launch of the Hustler Group Loan, designed to support micro, small, and medium enterprises (MSMEs). Speaking during the Madaraka Day celebrations at Moi Stadium Embu, President Ruto highlighted the facility’s role in deepening financial inclusion and fostering the growth of Kenya’s entrepreneurial spirit.
“This initiative is critical to ensuring enterprises grow, generate more earnings, and create more jobs for underprivileged Kenyans,” Ruto stated.
Looking Ahead
The enhancements to the Hustler Fund are part of President Ruto’s broader vision to empower Kenyans economically and drive sustainable growth. By responding to the needs of borrowers and introducing innovations such as credit scores and extended repayment periods, the fund aims to strengthen its role as a cornerstone of financial inclusion in Kenya.
With over 24 million borrowers and counting, the Hustler Fund continues to be a testament to the power of accessible, affordable credit in transforming lives and fostering economic resilience. As the program evolves, its impact on Kenya’s financial landscape will likely grow even more significant.
