• Borrowers have saved Sh2 billion.
• Nineteen million Kenyans have borrowed from the fund, with seven million borrowing daily.
Image: PCS
Kenya Kwanza will continue to be innovative and creative with the Hustler Fund to meet affordable credit needs of Kenyans, President William Ruto has said.
Speaking during the first anniversary of the Hustler Fund in Nairobi on Thursday, he said the fund has transformed millions of lives.
From Sh12 billion, it has become self-sustaining and has lent out Sh39.5 billion in the first year. Borrowers have saved Sh2 billion.
Nineteen million Kenyans have borrowed from the fund, with seven million borrowing daily.
He announced that customers who have saved with the fund will now earn interest of 12 per cent.
As part of efforts to motivate more Kenyans to borrow from the Hustler Fund, Ruto said the government will pay the borrowers 50 per cent more than they have saved to a maximum of Sh3,000 a year.
"We want to promote the culture of saving in this country," the President said.
Ruto said that 1.2 million people have their borrowing limits increased depending on the number of times they have borrowed.
"Those who have borrowed more than 10 times will have the money they can borrow doubled. For those who have borrowed 5-10 times, their limits will be increased by 60 per cent, while those who have borrowed 2-5 times will have their access limits increased by 40 per cent," he said.
Those who have saved can withdraw up to 30 per cent of their savings.
"But if you don't withdraw your savings, the borrowing limit will be doubled," he said.
Phase two of the fund will be simplified so more groups benefit.
"We have simplified phase two of the fund by registering groups, which in turn will benefit for between Sh200,000 and Sh1 million," President Ruto said.
He assured Kenyans the initiatives to reduce the cost of living were starting to bear fruit.
"The decisions we have made have stabilised the economy and it is now in a sound economic footing and right trajectory," Ruto said.
Deputy President Rigathi Gachagua said the Hustler Fund has transformed millions of lives in the country.
"We are happy that many people are taking and repaying loans," he said.
Gachagua urged county governments to allow traders, including hawkers, enough space to do business without harassment.
"Let's respect the efforts being made by hustlers to improve their lives. We should not interfere with their hustles," he said.
Cooperatives and Micro Small and Medium Enterprises Development CS Simon Chelugui and Nairobi Deputy Governor Njoroge Muchiri, among other leaders, were present.