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Launch of Hustler Fund at Green Park Terminus /COURTESY

Government

Govt to provide 50 pc incentive on Hustlers’ Fund savings

NAIROBI, Kenya, Nov 30 – The government has pledged to provide a counterpart funding incentive that will contribute one shilling for every two shillings saved by those who borrow from the Hustlers Fund.

The revelation was made by President William Ruto during the launch of the Fund, whereby borrowers’ will access 95 per cent of their approved loan while 5 per cent will go into their savings account.

The five per cent that goes toward the savings plan is split into 30 per cent for short-term savings and 70 per cent for long-term (pension) savings.

“We are taking deliberate measures to promote a saving culture in Kenya. No society can achieve its dreams of prosperity without a certain threshold of investment through the mobilization of adequate savings,” said Ruto.

The government will also establish a universal social security framework through the fund that will include pensions, occupational hazard, and insurance schemes in the informal sector.

This framework is expected to enhance savings while cushioning vulnerable Kenyans from the vagaries of accidental injury, ill-health and old age, thus transitioning citizens from social protection to social security.

Ruto said the government will capitalize the Hustlers Fund by allocating Sh50 billion annually over the next 5 years. This will facilitate the establishment and maintenance of a revolving fund.

“By launching the Financial Inclusion Fund, which is popularly known as the Hustler Fund, we are supporting underserved Kenyans with services and products that are responsive to their enterprises. We are also liberating them from shylocks and establishing a culture of saving, investment, and social security,” said Ruto.

The Hustlers’ Fund was part of President Ruto’s manifesto of uplifting small and medium-sized enterprises (SMEs) by facilitating access to affordable credit.

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Through the Plan, the government is committed to creating opportunities for millions at the bottom of the economic pyramid to work their way up and fulfill their aspirations.

The Hustler Fund is made up of 4 products: Personal, Micro Business, SME and Start Up loans.

Ruto unveiled the Hustler Fund Personal Loan product on Thursday which enables borrowers to access up to Sh50,000 through mobile telephone networks at an annual rate of 8 per cent.

To access the fund, Kenyans will only need to dial *254# to access Hustlers Fund starting Thursday, following its official launch by the Head of State.

To be eligible for the fund, one must be a Kenyan citizen aged 18 years and above, with a valid Identification Card and Registered Mobile number with mobile network providers like Safaricom, Airtel, and Telkom.

One will also be required to have a mobile money account that is either Mpesa, Airtel Money or Tkash, and the sim card must have been in use for more than 90 days.

The Hustlers Fund identifier is the ID number, hence one customer can not use more than one number to borrow.

Additionally, savings are secure even if a mobile device is lost because the Hustler Fund account is PIN-protected. Once the SIM card is replaced, access to the account will be restored.

The rest of the Hustler Fund products will be launched next year, Micro- Loans will come into the market by the end of January 2023, and the SME loan at the end of March.

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Finally, the Start-Up loan will enter the market at the end of May next year.

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