The government plans to change the Hustler Fund borrowing system to a savings based model.
This are among the new changes expected to take effect in the coming weeks, according to the Cabinet Secretary in the Ministry of Cooperatives and Micro, Small, and Medium Enterprises Simon Chelugui.
Borrowers have so far taken up Sh27 billion from the fund since it's launch late last year.
According to Chelugui an estimated seven million Kenyans were actively borrowing and repaying their loans as at April 25.
The CS was speaking during the lunch of a new Airtel product 'My plan, Chaguo Langu' that targets micro, small and medium enterprises, start-up entities, individual and corporates with premier calling and data plans that suit their operations.
“As at 9am Monday morning Sh27,155,237,928 has been disbursed to Kenyans. We are also monitoring the saving whereby we will plan to use that to determine the amount of lending to give hustlers,” said the CS for MSMEs.
Sh17,166,648,844 has been repaid, with the CS explaining that the Sh10 billion difference between the amounts disbursed and repaid represents loans that are yet to mature.
The CS also noted that Sh1,358,116,251 has so far been deducted for savings.
He indicated that the second phase of the Hustler Fund targeting SMEs that was launched on March 3 by President Ruto would be active from next week.
“SMEs will now receive between Sh10,000 and Sh200,000 in ministry's new plan for Hustler Fund disbursements in the coming week,” said the CS.
He said currently a majority of Kenyans taking the loans are using featured phones.
An estimated 53 percent of those taking the loans are using featured phones also known as kabambe, and 47 percent use smartphones.
Airtel Premier announced three packages for SMEs looking to grow their digital operations.
Airtel Kenya Managing Director Ashish Malhotra said that the plan would give Kenyans the freedom to choose the best-personalised calling and data services.
"Bonga Zaidi" for those with a need to make more calls, "Browse Ukibonga" for people who need a good balance of calls talk time and data and Browse Zaidi for heavy data users.” said Malhotra.
