Kenya’s Hustler Fund Celebrates One Year, Disburses Ksh.49 Billion in Loans

NAIROBI, Kenya – The Hustler Fund, a government initiative designed to provide affordable loans, has marked its first anniversary, successfully disbursing Ksh.49 billion in loans to over 19 million active borrowers. This milestone reflects the program’s significant impact on the financial accessibility for millions of Kenyans.

According to Kenya News Agency, the Cabinet Secretary for Cooperatives, Small and Medium Enterprises (SMEs), the country will celebrate this achievement on 30th November 2023, exactly one year after the fund’s launch. The event, commemorating the fund’s successful operation, will be presided over by President William Ruto.

During a press briefing in Nairobi’s Green Park area, Chelugui elaborated on the Hustler Fund’s achievements and objectives. He emphasized that the fund was established to address a pervasive financial challenge affecting many Kenyans. One key feature of the fund is its built-in savings component, where 5% of every borrowed amount is allocated to the borrower’s savings, amounting to a total of Sh.1.9 billion in savings to date.

Chelugui highlighted the story of Harrison, a Tuktuk operator from Mombasa, who had a telephone conversation with President Ruto. Harrison’s experience with the Hustler Fund is notable; he has borrowed over 800 times, accumulating savings of over Sh.37,000 and a total borrowing of over Sh.740,000.

The Cabinet Secretary also pointed out the positive impact of the fund on creditworthiness. Last year, over 7 million Kenyans were listed in the Credit Reference Bureau (CRB). However, since the fund’s inception, over three million Kenyans have improved their credit scores, moving away from CRB listings. This change signifies the fund’s empowering effect on borrowers.

Furthermore, Chelugui mentioned the emphasis on financial and digital literacy, which has been a critical component of the program. The fund boasts over 7.5 million repeat customers who continually borrow and repay their loans.

The CS shared the aspiration to expand the fund’s scope to include other products like universal health insurance and affordable low-cost housing. Analysis of the fund’s customer base revealed that the majority of borrowers are youths aged 18-35 years, showcasing the fund’s appeal to the younger demographic.

Chelugui concluded by highlighting the strong repayment rate, with total repayments at Sh.28 billion, indicating a repayment rate of over 70%. This rate reflects the fund’s success and the trust it has garnered among its beneficiaries.