The government has revealed plans to allocate an extra Ksh.10 billion to the renowned Hustler Fund.
It was originally introduced by President William Ruto in 2022 basically to extend financial support to small businesses across the nation that have long faced challenges in securing loans from local financial institutions.
This initiative aims to sustain the provision of affordable credit to individuals and Micro, Small, and Medium Enterprises (MSMEs), while also encouraging a culture of savings among beneficiaries.
According to Professor Njuguna Ndung’u, the Cabinet Secretary for National Treasury and Economic Planning, the Hustler Fund, has received a disbursement of Ksh 11 billion from the exchequer. This amount is part of the Ksh 20 billion allocated for the current financial year.
Prof. Ndung’u stated that the funds have been circulating within the Fund, providing low-interest loans at an annual rate of 8% to a total of 16.07 million Kenyans, with 7.1 million being repeat customers.
He disclosed that an impressive sum of Ksh.30.8 billion had already been disbursed through the fund.
In addition to serving as a lending facility, the fund also functions as a savings scheme. Borrowers have collectively saved Ksh 1.5 billion as mandatory savings, while an additional Ksh 17 million has been saved voluntarily.
Prof. Ndung’u further highlighted the remarkable growth in transactions, which currently stands at 43.5 million. Notably, one customer has borrowed from the Fund approximately fifty times, indicating a strong connection and utilization of the Fund.
He also mentioned that a total of Ksh 1.5 billion has been saved as a mandatory contribution, while an additional Ksh 17 million has been saved on a voluntary basis.
The Fund has been segmented into four distinct products, namely: Personal Finance, Micro Loans, SME Loans, and Startup. The availability of funds in each product varies based on your scoring, ranging from KSh 500 to KSh 50,000.
The Hustler Fund was established to provide financial support to the entrepreneurial ventures that have traditionally encountered challenges in securing much-needed capital. Recognizing the vital role played by small businesses in driving economic growth, President Ruto initiated this innovative program to bridge the gap between financial institutions and the grassroots entrepreneurs.
The creation of the Hustler Fund was driven by the aim to enhance financial inclusivity by providing responsible finance opportunities for individuals, microenterprises, small businesses, and medium-sized enterprises (MSMEs).
This initiative emerged from the draft Public Finance Management (Financial Inclusion Fund) Regulations of 2022, and it served as a significant commitment made by President Ruto during his election campaign.
During the 60th Madaraka Day celebrations on June 1st, the President launched the second product of the Hustler fund. This new offering is specifically designed to enable Kenyans to access funding through group initiatives, facilitating easier access to financial resources for individuals in need.
The President emphasized the importance of promoting inclusion through the Hustler Fund’s strategic deployment of groups like chamas and Saccos. These efforts aim to overcome exclusion and eliminate barriers to accessing credit, savings, social security, health insurance, and various other socio-economic amenities.
The primary objective of the Hustler Fund is to ensure that a broader range of MSMEs gain access to vital financial resources in a responsible manner.
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