Hustler Fund to partner with saccos

Cooperatives and Micro small enterprises CS Simon Chelugui has said the Hustler Fund is seeking to partner with Sacco's.

Speaking during the 52nd Harambee Sacco Annual Delegates meeting in Nairobi on Monday, Chelugui encouraged Saccos to set up more Front Office Service Activities (FOSA) offices across the country to facilitate the partnership. 

"You're not just going to serve your members; we are going to partner with you. Hustler fund, even the distribution of government services like Inua Jamii, and now soon, delivery of subsidy fertiliser," Chelugui said.

He congratulated Harambee Sacco for the improved revenue collection in the financial year 2022.

He said every part of the economy can be touched through cooperatives.

"The partnership we are building is to ride on their(saccos) infrastructure and their existing customer base so that we minimise on the bureaucracies and the processes, " he said.

He said the hustler fund under saccos will be used to lend to groups which are registered or opened accounts with the saccos. 

"Tire 1 cooperative saccos will receive up to Sh500 million, tire one banks will get Sh1 billion," Chelugui said. 

He said the aim of the move is to cultivate a saving culture among Kenyans. 

He said the ministry launched the new deal with saccos Monday morning and it is only awaiting CBK approval.

"In that product, we're focusing on SME, small groups, women groups, youth groups and Chamas," Chelugui said. 

He said the creditworthiness of groups will determine how much they receive.

That those who failed to service previous loans will still get money but lower than what they qualify for.

"We are not excluding any group, any member, but we will mitigate that risk by lowering the amount they are eligible for," he said.

He said the rate will be 8 per cent as it is with the Hustler fund, and it will be for a period of one to 12 months.

"The amount is bigger than the individual loans, but it will be group based. We are going to employ the sacco model in terms of co-guaranteeing each other," he said.

He said savings will be higher at 10 percent.

He said the credit will be given based on savings. That a portfolio of savings will be built to allow giving credit based on savings as saccos do. 

Chelugui said the hustler fund has rolled out Sh19,605,419,802  as loans. Sh 10,605,775,060 has been repaid.

Chelugui said the fund has so far recorded 18,903,017 subscribers.

He said the savings are currently at Sh970 million