The Hustler Fund disburses a Sh10,000 loan, but not all of it reaches the borrower directly. Only Sh9,500 is usable.
The rest—Sh500—is allocated to mandatory savings: Sh350 for a pension scheme and Sh150 for short-term savings. Borrowers must repay the full loan within 14 days.
Failure to do so triggers an interest rate hike from 8% to 9.5% starting on day 15.
To encourage saving, borrowers earn 9% annual interest on their saved amounts.
Additionally, the government offers a 2:1 matching incentive, adding Sh2 for every Sh1 saved, up to a maximum of Sh6,000 per year.
While the model aims to promote saving and responsible borrowing, some users have raised concerns over the short repayment window and limited accessibility of the full loan amount.
According to the Kenya Human Rights Commission’s latest report, these design issues have sparked public debate and calls for structural reform of the Hustler Fund program.
