Kenyan savers and borrowers invested in the Hustler Fund will soon be able to access their savings, with the first withdrawals expected in November, according to Cabinet Secretary Simon Chelugui.
The fund, launched as part of President William Ruto’s pilot project, has seen Ksh. 1.8 billion saved and Ksh. 36 billion loaned to 22 million Kenyans since its initiation last November.
Kenyan savers and borrowers who have contributed to the Hustler Fund will soon have the opportunity to redeem their savings, with the initial withdrawals slated to commence in November. This announcement was made by Simon Chelugui, Cabinet Secretary for Cooperatives and Micro and Small Enterprises, who revealed that Ksh. 1.8 billion had been accumulated in savings since the fund’s inception.
Since the launch of President William Ruto’s pilot project last November, a substantial sum of Ksh. 36 billion has been extended in loans to 22 million Kenyans.
“We have dispersed over Ksh. 36 billion to 22 million Kenyans and we have also a saving component of Ksh. 1.8 billion,” stated CS Chelugui.
“The first saver will access his 30 per cent of the savings on November 1 this year.”
Chelugui encouraged more Kenyans to participate in this credit service, underlining that the government is streamlining security requirements to emphasize the character of borrowers.
Under the new terms, consistent borrowers who repay punctually will build trust and may gain access to top financial institutions for larger loans. Chelugui emphasized the shift away from traditional collateral-based borrowing toward credit scoring based on borrowers’ repayment behavior.
“We have done away with the traditional securitization of borrowing. No more security…We are pioneering credit scoring; the character of the borrower to understand that if you borrow you will need to pay. And if you borrow frequently, and you repay on time, your credit score will go up,” explained the CS.
“In the end, we can now transfer that information to any leading financial institution which can use that information to give you more money.”
Chelugui concluded, “Hustler Fund is a common man’s fund; it is used to develop, mentor, and bring up Kenyans who might have been unfortunately disadvantaged and put them back into the financial cycle.”