President Ruto Fulfils Campaign Pledge, Launches Hustler Fund

Promise is a debt, so says an Irish proverb.

President William Ruto fulfilled his on Wednesday when he launched the much awaited Hustlers Fund, one of his key campaign promises to millions of unemployed Kenyans and small-scale traders.

The head of state reminded beneficiaries that the fund was a loan that had to be repaid. He also stated that the fund will give loan defaulters who had been barred from accessing credit, a chance to start afresh.

Dr Ruto also stated that the fund will bring to an end the era of Kenyans being taken advantage of by dishonest lenders who have been charging borrowers exaggerated interest rates.

Read: President Ruto’s PS Nominees to be Vetted After Court Throws Out Cases

“This is a momentous occasion that today we have a product that does not need an application, guarantee, or approval by a committee. It just needs a citizen, his phone or her phone, and a track record and they can borrow as much as they want so long as they keep to a track record,” Ruto said.

How to access Hustlers Fund:

Kenyans can access the fund using the short code *254# on Safaricom, Airtel and Telkom networks.

After dialing the short code, you will be required to insert your ID and pin number before selecting the loan that best suits you.

Personal loans being offered on the Fund are between Sh500 and Sh50,000, with a repayment period of 14 days.

The interest rate is eight per cent per annum.

When a customer borrows, the approved loan is sent to their mobile money account, 95 per cent of the loan is deposited into their money wallet, and 5 per cent in their savings account.

The five per cent savings is split into 30 per cent for short-term savings and 70 per cent for long-term (pension) savings.

Should a borrower default on payment, their credit rating is affected but will be given 15 more days to pay up. If the loan is still not paid back, the interest rate increases to 9.5 per cent per annum.

After, the Hustler Fund account is frozen and the borrower loses all accumulated credit scores after more than 30 days of defaulting.

Defaulters will not be listed with the Credit Reference Bureau, hence their credit rating with other creditors will not be affected.

According to Cooperatives and MSMEs Cabinet Secretary Simon Chelugui, a total of Sh408 million has been disbursed with some 1.14 million Kenyans since the launch of the fund.