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Hustler Fund Is Increasing Loan Limits – On One Condition

The increased limits will only be available to Kenyans who have made timely repayments of their existing Hustler Fund loan balances

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Hustler Fund loan limits are set to rise as the government-backed affordable credit scheme enters its second phase, in February 2023. Co-operatives and MSMEs Cabinet Secretary Simon Chelugui confirmed that, in the second phase intended to empower small businesses, Kenyans would be able to access Hustler Fund loans of between Ksh100,000 and Ksh2.5 million.

The ongoing first phase allows borrowers to access between Ksh500 and Ksh50,000 repayable within 14 days. The increased limits will, however, only be available to Kenyans who have made timely repayments of their existing Hustler Fund loan balances. The government is also partnering up with saccos to enable disbursement of the funds to eligible borrowers.

“We are finalising development of the second phase of the Hustler Fund that will see borrowers access between Sh100,000 and Sh2.5 million,” Chelugui confirmed.

“We are encouraging saccos to apply to disburse the funds in the second phase,” he added. The CS was speaking at Yetu Sacco’s Annual General Meeting (AGM) held in Meru on Wednesday, January 1. He disclosed that the Hustler Fund has so far disbursed Ksh15.9 billion, with 7.7 billion repaid since the program was rolled out in November last year.

More than 18.4 million Kenyans have subscribed to the Hustler Fund, with 5.6 million having borrowed multiple times.

Ahead of the Hustler Fund launch, President William Ruto had advised Kenyans running small businesses, including self-help groups, to prepare to take advantage of the fund by organizing themselves within saccos.

“How to get ready is to organize yourselves in saccos, chamas and cooperatives,” the President stated in October last year. “..This is how we will ensure no one asks you for security and you will access credit at affordable rates, because your group will be your security.”

READ>No Calls After Work Hours? Why New Bill Has Employers Protesting

Speaking at the AGM, Chelugui further disclosed plans to strengthen saccos by establishing a central liquidity system for the cooperative societies and integrating them into the national payment system.

“So far, about 52 out of the 360 saccos under Sasra have shown interest in having a central liquidity system. This will enable saccos clear cheques among themselves without using banks. We are also working on a credit guarantee scheme to protect members from any eventualities,” he stated.

He also welcomed sacco partnerships to support affordable housing access, such as  Mwalimu Sacco’s recently unveiled partnership with the Kenya Mortgage Refinance Company (KMRC) – the Mwalimu National Sacco Affordable Housing Mortgage Scheme.

The scheme will allow Mwalimu Sacco members, who are primarily teachers, to access home loans at comparatively affordable rates.

“I urge saccos to diversify their products and support the government housing project to close the gap in the housing sector. Saccos can work with the Kenya Mortgage Refinance Corporation to access affordable financing for their members,” Chelugui stated at the Yetu Sacco AGM.

READ MORE>Teachers to Get Cheap Home Loans in New Mwalimu Sacco Scheme

 

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MARTIN SIELE
MARTIN SIELEhttps://loud.co.ke/
Martin K.N Siele is the Content Lead at Business Today. He is also a Quartz contributor and a 2021 Baraza Media Lab-Fringe Graph Data Storytelling Fellow. Passionate about digital media, sports and entertainment, Siele also founded Loud.co.ke
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