- President William Ruto unveiled the product Thursday during the Madaraka day celebrations in Embu.
- Members can access between Sh20,000 to Sh1 million.
A record 20,000 groups have been enrolled in the new Hustler Fund product hours after its launch, Cooperatives and MSMEs cabinet secretary Simon Chelugui has said.
Out of these, Chelugui said, 4,504 groups have been processed successfully.
President William Ruto unveiled the product Thursday during the Madaraka Day celebrations in Embu.
A week ago, the CS said the fund has been undergoing technical evaluation over the last three months.
According to Chelugui, groups intending to borrow the money register using their mobile devices.
"They will then get their limits and this will enable them to borrow the money immediately," he said while noting that key strides have so far been made.
“I am glad that Kenyans have embraced the Hustler Fund wholeheartedly,” he stated.
Ruto said group micro-enterprise loan products allow members to apply for between Sh20,000 to Sh1 million.
"It is now my honour and pleasure to introduce and officially launch the second product of Hustler Fund, the Hustler Group Loan," Ruto said.
"I am glad that this launch of the group loan product is taking place against the backdrop of the phenomenal success of the Hustler Fund Personal Loan product. I expect this product will encounter even greater appetite from the market.”
The money is offered at an interest rate of seven per cent per annum on a reducing balance of 1.5 per cent default rate.
The repayment period is six months from the disbursement date with borrowers having an option of repaying in installments or lump sum.
“The groups scoring will be appraised through a credit scoring algorithm based on collective individual members score, including but not limited to, their savings and repayment history,” terms of the fund reads.
It will also be available to individuals seeking to upscale their businesses where Sh10,000 to Sh200,000 will be given under the same terms.