Kenyans will, from November 30th, be able to borrow a minimum of KES 500 and a maximum of KES 50,000 after the Cabinet approved the launch of phase 1 of Hustlers’ Fund at an 8pc interest rate
“…the loan limits will be a minimum of KES500 up to a maximum that will be determined by the borrower’s credit score, and capped at KES 50,000..the loan interest rate will be capped at 8% per annum computed on a pro-rated basis.”
The programme’s establishment and implementation were approved on Tuesday by the Cabinet during its second meeting with President William Ruto.
Hustler Funds is the first single credit product in the country.
“The implementation of the Administration’s signature pledge is tipped to liberate the people of Kenya from the bond of predatory lending,” the cabinet said.
During his inauguration, Ruto stated that the establishment of a Hustler Fund will provide cheap and easy loans to citizens.
“We shall implement the hustler fund dedicated to the capitalisation of micro, small and medium enterprises through chamas, saccos and cooperatives to make credit available on affordable terms that do not require unnecessary collateral,” President William Ruto.
Ruto said the Sh50 billion annual kitty will be channelled towards supporting micro, small and medium enterprises (MSMEs). The funds will be channelled through credit societies and investment groups.
The programme has been steered by regulators, including the Central Bank of Kenya (CBK), Financial Intermediaries and Financial Institutions and Mobile Network Operators.
By kenyan wall street