Co-operatives and MSMEs Cabinet Secretary Simon Chelugui has revealed the formula that the government has employed towards raising individual Hustler Fund Limit.
Speaking to the media on Wednesday, February 8, the CS broke down the process that is expected to see different Kenyans who have borrowed from the recently launched initiative receive different limits.
Chelugui explained that the limit would be considered according to the rate at which Kenyans have been borrowing and paying back.
“Those who have borrowed and paid will get double (the limit) they got the first time.
“Those who have borrowed three times and paid back in full will get an increase of 100 per cent since they have a plan and have been utilising the fund,” he noted.
He further disclosed that the percentage limit increase would be considered according to the number of times one has been borrowing and paying back.
“If you began with Ksh300, this time you will get Ksh600. For those who will cooperate (by consistently borrowing and paying back), they will reach a limit of Ksh50,000 in one year,” he added.
The CS explained that the fund lending began at a lower rate because the government had no specific records for Kenyans.
“We started at a lower rate when we announced that Kenyans would borrow from Ksh500 to Ksh50,000 because we didn’t have a record of Kenyans who wanted the fund.
The only way of having their records was through phone usage, and Mpesa usage because most of them had no bank accounts,” he noted.
More than 18.4 million Kenyans have subscribed to the Hustler Fund, with 5.6 million having borrowed multiple times.
Ahead of the Hustler Fund launch, President William Ruto had advised Kenyans running small businesses, including self-help groups, to prepare to take advantage of the fund by organising themselves within saccos.
On February 7, President William Ruto announced that the World Bank had provided financial backing for the Hustler Fund initiative.
In a statement, the Head of State noted that the global financial institution was keen on supporting the fund’s pool intended at enabling Kenyans to access credit for personal and business use.
Source: kENYANS.CO.KE
