Kenyans borrowed over Sh400 million in less than 24 hours following the launch of the Hustler Fund by President Ruto on Wednesday.
As of 8.45 a.m. on Thursday, 1.14 million Kenyans had been registered under the scheme and Sh408 million disbursed, according to figures released by Cooperatives and MSMEs Cabinet Secretary Simon Chelugui.
Chelugui further disclosed that the Transactions Per Second (TPS) had also stabilized at 190, down from a high of 500 on Wednesday.
Under the first phase of the fund, Kenyans will access personal loans of between Sh500 and Sh50,000 via USSD code *254#, with a 14-day repayment period and an annual interest rate of 8% calculated per day.
When a customer borrows, the approved loan is sent directly to their mobile money account, deposits 95% of it in their money wallet, and the remaining 5% in their savings account. The 5% that goes toward the savings plan is split into 30% for short-term savings and 70% for long-term (pension) savings.
If the loan is not repaid in 14 days, the customer’s credit rating is affected and the customer is given 15 more days and if the loan is not repaid, the interest rises to 9.5% per year
After more than 30 days of default, the borrower loses all the credit scores accumulated and the Hustler Fund account is frozen. There is no CRB listing and this default does not affect the person’s credit rating with other creditors.
Speaking during the launch, President Ruto said the fund will replace the collateral system built around title deeds and log books to access loans and will provide a new start for over eight million Kenyans who cannot access credit due to their bad credit history.
“The government is not looking for profits. We have placed a 0.002 percent interest rate per day. To make sure we can run the fund and make sure it is growing to ensure we have it in the future,” he said.
About the DRC and our Kenyan…
About the DRC and our Kenyan troops who are there. It seems to me that the Congolese Tutsi are fighting for their lives and livelihoods in Eastern DRC. The M23 is a military expression of this fight. It seems to me that the DRC politics is very hostile towards the Congolese Tutsi. DRC politics denies the citizenship of Congolese Tutsi. There is a lot of senseless killings going on. There is also a history of millions dead in the last 30 years in this Eastern DRC and the proximate environment. And of course the actions of the DRC military in its collaboration with FDLR( a group that engaged in the 1994 Tutsi genocide) create toxic political hostility towards the Congolese Tutsi. This is why there is military conflict and counter military conflict in Eastern DRC. The Kenyan Military should COMPLETELY and ABSOLUTELY avoid taking sides with the DRC army to kill or exile Congolese Tutsi. Instead Kenya needs to use its diplomatic and mediation powers to bring the two sides together. There should be sound political judgement in the adjudication of the issues both historical and present. Hopefully the end result will be a just, righteous and stable PEACE deal between the Congolese Tutsi and the DRC govt.
No need for collateral on…
No need for collateral on this loan. It’s only kes 500 which will feed a family day or two. I mean what kind of business will you do with 500?…Chama is much much more better
I urge all Kenyans to go for this free money
@ Bmore, it is always very…
@ Bmore, it is always very risky to grant loans to credit unworthy individuals.Eventually they will be stuck with the inflated interest.I foresee many getting trapped.Much like those who employ Mpesa loans that are attached to their mobile phone accounts. You default,and your phone is disconnected till you pay.Defaulters open accounts under other people’s names,then samething happens.However, it it agood shot in the arm for the smart ones who have good plans for the loans.
Kama graduates refused to…
Kama graduates refused to repay HELB, ni mwananchi wa kawaida atalipa hustler fund? I am sure 70% of Kenyans are viewing this as free money. I would. Hustler fund have kicked shairokos autta business.