By Patrick Chiriba and Jael Jepkemoi
President William Ruto on Wednesday launched the eagerly awaited Hustler Fund at Green Park Terminus in Nairobi.
Speaking during the launch, the president said the fund would be vital in unlocking economic equality in the country.
“I am happy that from today we shall all be equal as Kenyans. This is the fund that is going to equalize all the people of Kenya so that every citizen can know that they matter and they count,” he said.
The President was also thankful that his campaign pledge had been fulfilled. The Hustler Fund was one of the main promises during the Kenya Kwanza campaigns.
“I am happy what we promised during the campaigns has become a reality today,” he stated.
The fund is expected to provide over eight million Kenyans who had been placed on a blacklist by several credit rating organizations with much-needed relief and a fresh start.
The fund will also give entrepreneurs a second chance to obtain the credit they need to expand their businesses.
Earlier this week, the cabinet announced that the Hustler Fund’s credit, savings, pensions, and investments would all be offered electronically.
The loans range from 500 to 50,000 shillings and can be accessed via a Hustler Fund mobile application and the USSD code *254#.
Once approved, 95 percent of the loan amount will be deposited to the mobile money account while 5 percent will go to the savings account of the Hustler Fund.
The fund provides affordable credit by charging interest rates of 0.002% per day, which are 500 times lower than those of the cheapest current products, which range from 1% to 10% per day.
With the major partners including mobile operators and banks, the hustler fund will be available for Kenyans beginning on the 1st of December.
In case of a customer defaults, the interest rate will increase to 9.5% per year 15 days after the default date.
If the customer defaults for 30 days or more, their account will be frozen and they will lose their current credit score.
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