The government has officially launched the second phase of Hustler Fund with groups qualifying to get loans of up to a million shillings.
Speaking in Embu town during the 60th Madaraka Day celebrations, President William Ruto said groups will be used as collateral to award the loan with members accessing funds according to their credit score.
He said the conduct of a person as an entrepreneur and a member of the community will be used to determine one’s creditworthiness.
“I am delighted to announce that today we have launched the second product of the Financial Inclusion Fund (Hustler Fund), which is aimed at facilitating people access funding through groups.
As I have already mentioned, your credit score will determine the amount you can access, and the group is your collateral. This means that your conduct as an entrepreneur, and as a member of community will begin to
define your creditworthiness,” the President said.
However, Dr Ruto said defaulters will be given a second chance once they reform by showing sustained behaviour change.
The launch of the group loan product is taking place against the backdrop of the phenomenal success of the Hustler Fund Personal Loan product and expressed optimism that the product will attract even greater appetite from the market.
“The second product of the Hustler Fund will usher our unique collective-driven competitive market enterprise to the online domain. To promote inclusion, the Hustler Fund is going to deploy groups such as chamas and saccos
overcome exclusion and barriers to participation in credit, savings, social security, health insurance and other socio-economic amenities. This is how we will use policy and technological innovation to mainstream our way of life,” noted Present Ruto.
He said his government was committed to leveraging financial technology in order to ensure that no one is left behind in the financial and entrepreneurial inclusivity
revolution.
“Thus, we have equalised the formal and the informal system, enabling both to enhance their complementary contributions to jobs and wealth creation from an equal footing. As we celebrate this increase in our economic freedom, today we also celebrate the democratisation of the Kenyan economy,” he said.
According to statistics, so far 20.2 million Kenyans have been able to access nearly Sh30 billion and managed to repay Sh19.7 billion with 7 million being repeat customers.
The total number of digital financial transactions currently stands at 42.5 million.
The President noted that borrowers do not need to know anyone, bribe any official or go through complex bureaucratic procedures in order to access the Hustler Fund.
“They only need a device, a little airtime and a few minutes, and they are able to get money wherever they are,” noted the Head of State.
He said the Hustler Fund has been both transformative and revolutionary noting that the fund is on its way to becoming the biggest financial institution going by the number of borrowers and active loans.
The Hustler Fund has also been hailed as turning around the country’s fintech, transforming it from a predatory ecosystem to a more responsible one.
As a result, Kenya’s digital economy received a tremendous shot in the arm as demonstrated by reports that Safaricom alone has enrolled at least 2 million new subscribers into its financial ecosystem courtesy of the Fund, the President added.
