The Cabinet has set Ksh500 as a minimum that an individual will be able to get as a loan from the soon-to-be-launched Hustler Fund.
A cabinet meeting chaired by President William Ruto also set Ksh50,000 as the maximum loan that can be disbursed under the fund.
The resolutions were approved in a cabinet meeting held at State House, Nairobi, on November 15, 2022.
Further, according to a cabinet dispatch to the press, the Hustler Fund will be rolled out officially on November 30, 2022.
“As part of the first phase of this roll-out that is expected to be unveiled and launched to the Nation on November 30th 2022; the loan limits will be a minimum of Ksh500 up to a maximum that will be determined by the borrowers’ credit score and capped at Ksh50,000,” read part of the dispatch.
Further, interest in the Hustler Fund – legally known as Financial Inclusion Fund – will be 8 per cent per year.
“As a first single digital credit product in the country and the region, the loan interest rates will be capped at 8% per annum computed on a pro-rated basis,” noted the dispatch.
Affordable credit
The meeting also approved the legal and institutional framework to anchor the establishment and implementation of the Hustler Fund.
The government argues that the ground-breaking fund will open up affordable credit for the majority of Kenyans, who it says have previously been locked out of the credit facilities.
It is also expected that the Hustler Fund will boost a savings culture while creating momentum for sustainable development.
Based on the cabinet dispatch, the Ksh50 billion fund is structured with four products – Personal Finance, Micro Loans, SME loans and Start-Up.
Meanwhile, a committee that has been collecting public views on the Hustler Fund concluded the meetings on Wednesday.
Views collected are expected to be incorporated into laws and regulations that will be used to govern the Hustler Fund.
