5 BIG COMPANIES RUNNING HUSTLER FUND PROJECT

The attention of Kenyans was piqued when David Ndii, chair of President William Ruto’s Council of Economic Advisors (CEA), stated in a TV interview that no government official had access to the Ksh50 bi“Hustler Fund, asserting that it was ran by the private sector.

“The hustler fund is run by the private sector, we have no access to it. No public official has access to the hustler fund. It is run by an engine provided by telecom companies,” he stated.

Five companies form the key cogs of the scheme. Two of them are the banks that hold funds allocated by the National Treasury for the scheme – Kenya Commercial Bank (KCB) and Family Bank. The other three are telcos Safaricom, Airtel and Telkom which facilitate access to end users via mobile money.

The telcos and banking partners earn commissions for administering the fund.

“We have wallets held in two banks, Kenya Commercial Banks and Family Bank, and they are the ones who now inject liquidity into the mobile money wallets of borrowers”, Co-operatives and MSMEs Cabinet Secretary Simon Chelugui stated at a separate forum on February 14.

He further confirmed that loan limits for the fund would be increased from February 15, stating that eligible borrowers had been identified. The ministry had earlier stated that only those who had been making prompt repayments would have their limits increased.

The Hustler Fund was launched on November 30, 2022, and allows Kenyans to borrow between Ksh500-Ksh50,000.

“As we speak, we should be able to raise the limit starting February 14. The names of everyone to whom this will be applicable have been mapped out. The raising of the limit is going to only those who have borrowed and repaid. It will need an extra Sh1.8 billion to cover the raising of the limit,” the Cabinet Secretary stated.

In coming months, the Hustler Fund plans to roll out more products including lending to saccos and groups.

Sourced from business today