In the 2023/2024 budget, the government has allocated a substantial amount of Sh10 billion for the Hustler Fund. Treasury CS Njuguna Ndung’u has stated that additional funds will be provided to support entrepreneurial efforts. Since the initial launch of the first product, the government has already invested Sh11 billion in the fund, which offers low-interest loans at a rate of eight percent per annum.
According to Ndung’u, a significant number of Kenyans have benefited from the fund, with 16 million individuals having accessed it so far. Among them, 7.1 million are repeat customers. The amount borrowed from the fund has reached Sh30.8 billion. Additionally, the fund encourages savings, with Sh1.5 billion saved as mandatory savings and Sh17 million saved voluntarily. The government has witnessed remarkable growth in transactions, totaling 43.5 million transactions.
President William Ruto launched the third product of the Hustler Fund, called the Hustler Group Loan, on June 1, during the 60th Madaraka Day celebrations. Ruto expressed his delight in introducing and officially launching this new product, emphasizing its aim to facilitate people’s access to funding through groups. The Hustler Fund aims to overcome exclusion and barriers to participation in credit, savings, social security, health insurance, and other socioeconomic amenities by deploying groups such as chamas and saccos.
The Hustler Fund specifically focuses on providing support to small-scale traders in the country. It comprises four different loan products: personal loans, micro-business loans, SME loans, and start-up loans. This comprehensive approach aims to cater to the diverse needs of individuals and businesses seeking financial assistance.
Overall, the government’s allocation of Sh10 billion for the Hustler Fund in the upcoming budget reflects its commitment to fostering entrepreneurship and supporting small-scale traders in Kenya. The fund’s various products and emphasis on group-based access to financing demonstrate a multifaceted approach to promoting financial inclusion and socioeconomic development in the country.