Kenyan President William Ruto on Wednesday unveiled the ‘Hustler Fund’ to empower small businesses and entrepreneurship in a bid to create jobs and reduce poverty.
The fund, which is worth Ksh 50 billion annually, will provide loans and grants to small businesses and entrepreneurs. Ruto said that the fund is part of the government’s efforts to create jobs and reduce poverty. He urged the youth to take advantage of the opportunities provided by the fund to start their own businesses.
The Kenya Kwanza administration is fulfilling one of its biggest campaign pledges through launching the Hustler Fund. The launching of the fund is aimed at supporting young entrepreneurs in the country. The fund will provide financial support to young entrepreneurs who have innovative and viable business ideas. The Kenya Kwanza administration is committed to supporting young entrepreneurs in the country and this fund is one of the ways in which it is doing so.
The fund is a digital financial inclusion initiative designed to improve financial access to responsible finance for personal, micro, small, and medium-sized enterprises (MSMEs) in Kenya. The fund will also support capacity building and financial education programs to help borrowers manage their finances responsibly.
Dr. Ruto unveiled the Fund at Green Park in Nairobi to fulfil a commitment he made to help ordinary Kenyans have easy access to affordable credit for their businesses. Ruto said that the Fund would help reduce the cost of credit for small businesses, making it easier for them to access the capital they need to grow and create jobs.
The Hustler Fund, which was launched by the Kenyan government in collaboration with mobile network operators Safaricom, Telkom, and Airtel, will allow borrowers to apply for loans through USSD code *254# and on the mobile apps of the respective network providers.
According to the Ministry of Cooperatives and MSME Development, the loan facility is aimed at supporting young people with innovative business ideas.
The loan limits for this product will be a minimum of KSh. 500 up to a maximum that will be determined by the borrower’s credit score and capped at KSh.50,000.00. This means that if a borrower has a credit score that falls within the acceptable range, they may be able to take out a loan for up to KSh.50,000.00.
Creditworthiness is important not just for getting approved for a loan in the first place, but also for getting favourable terms. Borrowers who have demonstrated a history of timely payments are typically rewarded with lower interest rates and other perks, so it pays to keep up those good habits. Hustler Fund is committed to helping its customers build strong credit, and encourages everyone to keep up with their repayments.
In case a borrower does not repay the loan within the set 14-day period, a loan recovery and collection process will be initiated. One will not be eligible to apply for another loan before the repayment is completed.
There will be penalties imposed on the defaulters where 15 days after the date of default, the interest rate will be adjusted from 8% per annum to 9.5% per annum.