Kenyans borrow Sh30 billion from Hustler Fund in six months

Kenyans borrowed an additional Sh11 billion between February and May from the Hustler Fund highlighting the thirst for cheap credit, prompting the country to launch a third phase of the facility now targeting the Chamas.

On Thursday, President William Ruto launched the Hustler Collection Fund, with the goal of providing money primarily to informal dealers who must register as a collection to qualify for a kitty.

He spoke in Embu Province during this year’s Madaraka Day celebrations.

is reading: Hustler Fund loans amounted to 19 billion shillings in three months

The launch came on the day the head of state announced that Kenyans had so far borrowed Sh30 billion, up from Sh19.6 billion reached in mid-February.

The first phase of the Hustler Fund was launched on 30 November last year as the new management moved to facilitate access to credit by individuals, albeit in small amounts from Sh500 to Sh50,000.

In March of this year, the Head of State launched the reconfigured Hustler Fund containing the Women’s Enterprise Fund (WEF) and microloan product.

“The total number of digital transactions now stands at 42.5 million, with 20.2 million Kenyans gaining access to nearly Sh30 billion, paying Sh19.7 billion, with seven million repeat customers,” Dr. Ruto said in his speech on Madaraka.

The president did not disclose how many borrowers defaulted, months after the state admitted for the first time that some recipients had shown signs of distress.

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The interest rate on the Hustler Fund for Chamas remains undisclosed. The interest rate for individual loans launched last year in November is seven percent seven percent.

Prices are calculated on a pro rata basis. However, details about the minimum amount groups can borrow remain scanty.

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