Government to release Hustler Fund savings from November with Ksh1.8 billion already saved since the initiative was launched.
According to Cabinet Secretary for Cooperatives and Micro and Small Enterprise Simon Chelugui, Kenyans would have access to Hustler Fund savings by November 2023.
Since the fund’s inception in November 2022, Ksh1.8 billion has been saved, CS Chelugui revealed.
He noted so far, the government has loaned Kenyans a total of Ksh36 billion.
“We have dispersed over Ksh.36 billion to 22 million Kenyans and we have also a saving component of Ksh.1.8 billion,” CS Chelugui said.
“The first saver will access his 30 percent of the savings on November 1 this year.”
Chelugui further announced plans by the government to remove security features from the fund and focus on borrower character and trends.
“We have done away with the traditional securitization of borrowing. No more security…We are pioneering credit scoring; the character of the borrower to understand that if you borrow you will need to pay. And if you borrow frequently, and you repay on time, your credit score will go up.
According to the CS, this will see disciplined borrowers increase their loan limits and an eventual referral by the government to top financial institutions for larger loans.
“In the end, we can now transfer that information to any leading financial institution which can use that information to give you more money,” he noted.
He added: “Hustler Fund is a common man’s fund; it is used to develop, mentor, and bring up Kenyans who might have been unfortunately disadvantaged and put them back into the financial cycle.”