Global lender, World Bank has decided to support the Hustler Fund, also known as the financial inclusion fund that has been proposed by the Kenyan government.
William Ruto, President of Kenya welcomed World Bank’s initiative to support the Hustler Fund in helping the vulnerable in society.
Preceding this, the Head of State held a meeting at Statehouse with a delegation from World Bank, led by Victoria Kwakwa, Regional Vice President for Eastern and Southern Africa at State House, Nairobi.
“We appreciate the decision of the World Bank to recognize the Hustler Fund in cushioning the vulnerable in the society.”
President Ruto
According to President Ruto, the technical assistance from World Bank will massively contribute towards making the fund more inclusive and transformative to millions of ordinary Kenyans.
Kwakwa, on her part acknowledged the Bank’s work-in-progress efforts towards climate resilience agenda – based on the recent drought.
The government of Kenya, on this note is set to conduct a due diligence on all subscribers to the fund by reviewing the borrowing history of close to six million subscribers to enable them access more money.
President William Ruto also noted in his address to the World Bank that the Hustler Fund will conduct an assessment on its 18 million user’s borrowing history after every four months and award deserving individuals with a financial grade.
Explaining further the contribution of the financial grade award to the fund, President Ruto indicated that the financial grade will help determine the loan limit of each subscriber, based on how regularly they borrow and service their debts.
“At the end of this month, every borrower will be awarded a financial grade. This will explain what makes one have a good grade.”
President Ruto
Continuing, the President introduced ‘The Hustler Fund Micro Credit’, a new offering by the government to enable SACCOs (Savings and Credit Cooperative Organizations or Societies) and groups to secure loans for their members.
“By the end of this month (February), the Hustler Fund will have a second product that will help those in Sacco and groups to also access low interest credit and help members grow their businesses.”
President Ruto
More About Kenya’s Hustler Fund
The Hustler Fund, also known as the Financial Inclusion Fund is a loan project, championed by the Kenyan government.
It provides instant loans to Kenyan citizens upon request. The program was launched by William Ruto, President of Kenya in late 2022, with the intention of providing at least $410 million in loans to the vulnerable in society.
The Fund was part of President Ruto’s election campaign promises to the inhabitants of Kenya and was done on a platform dedicated towards creating a ‘new economic order’, of which the Hustler Fund formed a key aspect.
Prior to the introduction of the Hustler’s Fund, President Ruto observed that Kenyan citizens are in a state of perpetual debt as a result of the widespread nature of digital loans, which Kenyans often rest on to pay for their purchases every day.
These digital loans, the President observed carry high interest rates and as such becomes nearly impossible for the average citizens to service, leaving them in debt.
With the fund coming into being therefore, citizens of Kenya are now able to borrow money using their cell phones.
The government invested an amount of Kshs 50 billion to commission the fund to commence its operation.
The Hustlers Fund is revolutionary as its objective is to make affordable credit to sections of the population that have been left behind for far too long.
An ideal feature that distinguishes it from all other loan services is that the fund seeks to lend to businesses at an interest rate of 8% per year – the lowest interest ever charged in Kenya.
As a result, citizens will be able to start or boost their hustles without being crushed by predatory lenders, shylocks and over-the-roof interest rates.
The Hustler’s fund will provide affordable credit in these four products: Personal finance, micro loan, SMEs loan and lastly, startups loan.
READ ALSO: Politicians Should All Turn Negative Gossip To Positive – Dr. Lawrencia Agyepong
