On June 1, according to a statement from Simon Chelugui, the cabinet secretary for cooperatives and MSMEs, President William Ruto will formally introduce a new Hustler fund product.
Chelugui claimed that for the past three months, technical examination has been taking place for the product, which will be available to all groups and cooperative societies.
“I am happy to report that we have put in place necessary regulations and this product, which will be much bigger, will be launched by the president during the Madaraka Day celebration,” the CS said.
The third Kenya International Investment Conference (KIICO 2023) will be one of several events taking place during a weeklong Madaraka Day celebration this year, which will include as its themes MSMEs, cooperatives, commerce, and revenue.
All officially registered groups would have access to funds ranging from Sh20,000 to Sh1 million at an interest rate of 7% per year on a falling balance of 1.5% default rate. The payback period is six months from the date of disbursement, and borrowers may choose to repay in one single sum or in installments.
The rules of the fund state that “the groups scoring will be evaluated through a credit scoring algorithm based on collective individual members score, including but not limited to, their savings and repayment history.”
The same conditions will apply for loans ranging from Sh10,000 to Sh200,000 made to anyone looking to upgrade their enterprises. The debut will occur seven months after the president announced the availability of individual loans with sums starting at Sh500. So far, around Sh28 billion has been distributed.