KES 3.69 billion Hustler Fund loans disbursed in five days
Just 5 days after it was launched by President William Ruto, the number of Hustler Fund customers who have opted in has increased to 10,624,748 as of 7 a.m. on Monday, December 5 2022.
The Hustler Fund has given out a total of KES 3.69 billion, or an average of KES 738 million per day. The fund has had a total of 6,468,560 transactions.
The fund has also seen repayments totalling KES 190,625,250.
Cabinet Secretary for Cooperatives, Micro, Small and Medium Enterprises (MSMEs), Simon Chelugui, says at least 185,028 customers have borrowed more than once from the Hustler Fund.
Borrowers can access the loans at an annual percentage rate of 8%, and the repayment period has been capped at 14 days.
At an annual interest rate of 8%, a borrower who uses a KES 500 loan will have to pay back KES 501.53 after 14 days, or KES 1.53 in interest.
The interest rate is lower than both the annualized M-Shwari fees of 108 percent and the most recent average bank borrowing cost of 12.38 percent.
The facility offers loans in the following four categories: personal loans, microloans, small and medium-sized businesses (SMEs), and start-ups.
A person must be at least 18 years old, have a valid national identification card, a registered SIM card, and a mobile money account with Safaricom, Airtel, or Telkom in order to qualify as an individual.
Additionally, their lines must have been operational for at least 90 days. This means that you will not be qualified if you purchase a new SIM card today and register it solely for the purpose of obtaining the loan.
One will be subject to a higher interest rate of 9.5% per year if they don’t pay off the loan within 14 days.
The fund targets Kenyans who take out personal loans of up to KES 50,000. Starting in February 2023, SMEs seeking capital between KES 100,000 and KES 5 million will benefit from the fund.