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800,000 Loan Defaulters In Kenya's Small Business Hustler Fund

President William Ruto has said that 800,000 Hustler Fund loan borrowers have defaulted on their repayments, Njoki Kihiu reports for Capital FM. The president is urging borrowers to make payments on time, so that they can increase their loan limit and savings.

Over eight million Kenyans registered for the fund since its launch on November 30, 2022.

The Hustler Fund is President William Ruto's pet initiative, which he promised during his presidential campaign.

Ruto insists the fund would alleviate the living standards of many Kenyans, especially those operating micro-small enterprises.

The repayment period of the loans whose annual interest rate is 8% is capped at fourteen days and borrowers who pay on time are assured of a higher credit score.

The fund also requires borrowers to set up a savings account, with 5% of the loan amount automatically going into a personal savings scheme, to which the government will contribute a maximum of 6,000 shillings per year.

To be eligible for the fund, one must be a Kenyan citizen aged 18 years and above, with a valid Identification card and a registered mobile number with mobile network providers like Safaricom, Airtel, and Telkom.

The fund offers four different products - start-up loans, micro-loans, SME loans, and personal loans.

Deputy President Rigathi Gachagua has castigated those opposed to the Hustler Fund on the claims that it offers meagre loans to lenders.

InFocus

DPSS/Capital FM

President William Ruto.

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