President William Ruto has announced that the Hustler Fund is on track to launch by December this year. The President made this statement during the Mahujaa Celebrations held on Thursday at Uhuru Park
Kenyans would need to save regularly in order to access the eagerly anticipated Hustler Fund, which will assist small and microbusinesses obtain affordable funding.
“On December 1 of this year, I’ll introduce the Hustler Fund credit and savings program.
All borrowers using this platform will also take part in a long-term pension scheme and a short-term savings plan.” Ruto said
The President said that the fund would help low-income individuals, or “hustlers,” as he refers to them, and that it would be distributed through banking societies and investment organizations.
‘Credit products will be offered to small enterprises on digital platforms at cheap rates to individuals and also through chamas, groups, saccos and cooperatives,” he added.
“The Government of Kenya will match every saving created by borrowers on this platform on a 2:1 ratio to a level to be decided by the program.”
Over a month after taking office, the President is facing pressure to fulfill his campaign pledge of providing affordable loans to low-income groups, such as jua kali artists, boda boda drivers, and mama mbogas.
Dr. Ruto, who ran for office on a promise of rescuing low-income people from encroaching poverty, had earlier declared that his administration will set aside Sh50 billion annually to make it easier for low-end traders to access capital.
He stated that “our commitment on accessible credit was at the core of the Kenya Kwanza election campaign.”
“We are aware that the Hustlers Fund’s operational launch date is the most often asked question in the streets, boda boda parking lots, and fresh produce marketplaces.” said he.
The ‘bottom-up’ economic approach is emphasized in the new government’s economic plan as a means of empowering the disadvantaged.
Making finance accessible is a key component of President Ruto’s goal for the next five years, especially for small business owners who have historically had to pay higher interest rates on loans.
“Credit availability is an economic booster that boosts activity. The private sector, particularly small and medium-sized businesses, is being squeezed out by excessive borrowing rates, he warned on Thursday.
He has previously claimed that the millions of unemployed Kenyans and also small and medium-sized businesses will profit from the bottom-up concept.
One of the main obstacles for aspiring Kenyan businesspeople is getting access to markets and start-up financing since banks demand collateral, which the majority of them lack.
The timing of Ruto’s pledge coincides with rising loan costs. After the Central Bank of Kenya (CBK) increased its benchmark lending rate from 7.5% to 8.25% at the end of September, Kenyan banks began raising interest rates.