Hustler Fund has hit over Ksh 26.4 billion, just five months since it was launched by President Ruto’s Kenya Kwanza government.
Initially targeting individuals, the firm added the Hustler Fund Micro Credit, allowing Saccos and Groups to borrow on behalf of their members by the end of the month, Hustler Fund was delivered in a record 5 weeks by Safaricom’s Fintech and Software Engineering Team and has so far over 18 million Kenyans using it, with over KES 26.4 billion disbursed.
“Safaricom is the premier technology partner for service delivery. We have the capability, the knowhow, the experience, and the knowledge to support you as you extend services to all Kenyans in all facets of technology,” said George Njuguna, Safaricom’s Group IT Director at the ongoing Connected Summit 2023. “We can build and accelerate deployment in less than a month partly due to our Agile ways of working and by coming together. One such cases was Hustler Fund that was delivered in a record 5 weeks by our Fintech and Software Engineering Team. So far over 18 million Kenyans have opted in, with over KES 26.4 billion disbursed as at 9PM last night. Indeed, this has been the most successful financial inclusion project launched in this continent.”
The Hustler fund is a digital financial inclusion initiative designed to improve financial access to responsible finance for personal, micro, small, and medium-sized enterprises (MSMEs) in Kenya. The fund provides access to responsible finance for personal, micro, small, and medium-sized enterprises (MSMEs) by innovating, developing, and deploying bottom-of-the-pyramid financial services and products that are affordable, accessible, and appropriate for the unserved and underserved persons, including credit, saving, insurance, pension, and investment products.
Just one day after the Hustler fund was established, a total of Ksh 408 million was disbursed to 1.14 million Kenyans according to the Cabinet Secretary for Cooperatives and MSMEs Simon Chelugui. The fund is primarily intended to support the nation’s small-scale traders. President William Ruto unveiled the Hustlers Fund on November 30 at Nairobi’s Green Park Bus terminal, fulfilling a campaign pledge for the 2022 elections. President William Ruto said he set aside Sh50 billion for the “hustlers.”
Hustler Fund requires repayment within 14 days. A customer borrowing KES 500 will have to pay back KES 501.53 after 14 days, or KES 1.53 in interest, with a 14-day repayment period and an annual interest rate of 8% calculated per day. If the loan is not repaid within 14 days, the customer’s credit score is impacted, and they are given an additional 15 days. The interest rate rises to 9.5% annually if the loan is still not repaid.
After more than 30 days of nonpayment, the Hustler Fund account is deactivated and the borrower loses all acquired credit ratings. This default has no effect on the debtor’s credit rating with other lenders because there is no CRB listing. Once the debt has been fully repaid, the defaulting borrower may take out another loan. They may choose to pay it off in one lump sum or over time.
Based on the borrower’s credit rating, the maximum amount is set at Sh50,000. The annual maximum interest rate for the loan will be 8%, and it will be calculated pro rata. The country’s first single credit product is called Hustler Funds. A pro-rated calculation of the loan interest will be used, with a maximum annual rate of 8%. In the nation, Hustler Funds is the first single credit product.
A pro-rated calculation of the loan interest will be used, with a maximum annual rate of 8%. In the nation, Hustler Funds is the first single credit product. By February, Kenyans had borrowed Sh19.6 billion from the Hustler Fund and borrowers had repaid Sh10.605 billion.
