Just five days after it was launched by President Ruto, the Hustler Fund kitty has disbursed Sh3.6 billion to Kenyan borrowers, representing an average of Sh738 million per day.
As of 7 a.m. on Monday, 10,624,748 Kenyans had registered for the Hustler Fund and Sh190 million had been paid back, according to the latest data released by the Ministry of Cooperatives and Micro Small and Medium Enterprises (MSMEs). The fund has had a total of 6,468,560 transactions.
Cabinet Secretary for Cooperatives and MSMEs Simon Chelugui said at least 185,028 customers have borrowed more than once from the Hustler Fund.
On the first day, Kenyans borrowed an average of Sh17 million per hour, highlighting the appetite for cheap loans.
The Hustler Fund, a digital financial inclusion initiative by the Kenya Kwanza administration, provides personal loans of between Sh500 and Sh50,000 at an annual interest rate of 8%, and the repayment period was capped at 14 days.
To access the funds through USSD *254#, one must also be a Kenyan citizen aged 18 years and above, with a valid Identification Card and registered mobile number with mobile network providers like Safaricom, Airtel, and Telkom. Their lines must have been operational for at least 90 days.
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.
