President William Ruto introduced a new product for registered organizations such as SACCOs and Chamas. During the Madaraka Day celebration in Embu on Thursday, June 1st, Ruto said that the loan will be between Ksh 20,000 and Ksh 1 million.
“We are unveiling the Hustler Fund stage two with a loan limit of between KSh 20,000 and KSh 1 million. Registered groups will be able to access it as we ensure affordable credit to all Kenyans,” said Ruto.
He also noted that the unveiled product will promote financial inclusion and eliminate barriers to accessing affordable credit. He said the government is working closely with fin techs like Safaricom M-Pesa to achieve its goal of financial inclusivity.
“We are committed to leveraging fintech to ensure that no one is left behind in the financial and entrepreneurial inclusivity revolution. “Safaricom alone has enrolled at least 2 million new subscribers into its financial ecosystem courtesy of the Hustler Fund,” he added.
Ruto announced that more than 20.2 million Kenyans received low-interest loans in the first phase. Total transactions amounted to 42.5 million as borrowers received around KSh 30 billion from the fund.
Kenyans benefiting from the fund repaid KSh 19.7 billion, while those returning to borrow grew to 7 million customers. In May 2023, the President reminded Kenyans that the Hustler Fund loans were not free and must be repaid. Speaking in Embu County, Ruto said the money is only meant to improve the livelihoods of small business owners.
The President complained that some Kenyans were not repaying their loans claiming they voted for the Kenya Kwanza administration.