Cabinet Approves New Product Of Hustler Fund Loan Targeting 2 Million Kenyans

The Cabinet on Tuesday, September 17 approved the introduction of a third product of the Hustler Fund loan focusing on the Small and Medium Enterprises (SME) sector.

According to a despatch from the first broad-based Cabinet meeting chaired by President William Ruto, the new product was approved for rollout in commemoration of its second anniversary.

The special loan, State House notes, will target 2 million beneficiaries who have demonstrated a strong credit history with the Fund.

"In commemoration of the Fund’s second anniversary, Cabinet directed the rollout of a third product offering specifically focused on the Small and Medium Enterprises (SME) sector. This new product will initially target the 2 million beneficiaries who have demonstrated a strong credit history with the Fund," the despatch read in part.

President William Ruto being taken through how to access the Hustler Fund during its launch on November 30, 2022. /PCS

The Cabinet noted that the groundbreaking initiative aims to create a pathway for banking the targeted beneficiaries, further deepening financial inclusion within the SME sector.

During the meeting, the Cabinet members were apprised of the progress made in advancing financial inclusion through the administration’s flagship initiative, formally known as the Financial Inclusion Fund.

"Cabinet noted that, to date, the Fund has disbursed Ksh57 billion to Kenyans, with at least 2 million customers now regular daily borrowers. Additionally, in keeping with the Administration’s pledge to inculcate a culture of saving for posterity, the Fund has successfully mobilized Ksh3.2 billion in savings," added the despatch. 

The Hustler Fund is arguably a premium flagship project of the Kenya Kwanza administration that had promised to ensure financial inclusion through the provision of loans with more friendly conditions.

Launched in 2022, the loan has been termed as a game-changer in the MSMEs sector and many times has President Ruto hailed its achievements. Besides providing credit for Kenyans, the program was also aimed at bringing about a culture of savings in the country's mainstream atmosphere.

However, concerns about high default rates among borrowers threaten the Fund's sustainability, with statistics from the National Treasury as of August this year revealing that the number of defaulters stood at 9.9 million people, 27 percent of the total borrowers.

Cabinet Secretary of Cooperatives and MSMEs Wycliffe Oparanya in an interview earlier in September revealed that Ksh12 billion was held by defaulters who have not paid their borrowed amounts.