Ruto Forced To Explain Ksh50K Hustler Fund Limit After Uproar

President William Ruto has clarified the loan limit for the Ksh50 billion Hustler Fund after questions were raised across the country.

Speaking during the Kenya Kwanza Parliamentary Group meeting at State House on Wednesday, November 16, the Head of State said that the Ksh50,000 limit was meant for individual borrowers.

Accordingly, the Fund would be grouped into; individuals, groups, small enterprises and cooperatives.

"The amount of money available on the personal loan platform is Ksh500 - Ksh50,000.

President William Ruto speaking during the Kenya Kwanza Parliamentary Group meeting at State House on November 16, 2022. /PCS

"The next product for chamas will start from Ksh50,000 to Ksh250,000, then the next one will climb up like that as we continue to roll out the fund," Ruto stated.

He also noted that those who opt into the loan platform will be mandated to save a certain percentage and the government will also contribute 50 per cent of the savings.

Those with good loan performance will be guaranteed more loans and higher loan limits once the Fund, based on credit scoring, is launched on Wednesday, November 30.

"We have made it mandatory that as you borrow, there is a saving component. If you borrow Ksh1,000, Ksh50 goes to your saving.  For every amount to save, the government of Kenya is going to match it 2:1," he stated.

He also announced that four per cent of the fund will be set aside for technology in charge of its disbursement, including a call centre which will be accessible to loanees.

The Hustler Fund will also be set up in a way that it sustains itself, with measures implemented to safeguard it even when defaulters are involved.

"We have put in a component of two per cent so that if there are any defaulters, they do not reduce the fund. An extra two per cent will also be installed to ensure that the fund grows," the head of state added.

President Ruto further announced that applications for the Fund will be done online similar to signing up for mobile money platforms and will be sent to the wallets of mobile subscribers.

"The product will be seamless as you will not need any paperwork. It will be online just like mobile money transfer and people will be able to borrow using a designated USSD number," he expounded.

As the first single-digit credit product in the Country and the region, the loan interest rate will be capped at 8 per cent per annum computed on a pro-rated basis.

Kenyans must be above the age of 18 and have a national identity card (ID) to be eligible for the fund. They must also be members of micro, small and medium enterprises, SACCO societies, Chama and table banking groups or any other registered association. 

Registered groups and organizations applying for the loan should not have a turnover of more than Ksh100 million.

President Ruto chairs the Cabinet meeting at State House on Tuesday, November 15, 2022. /FACEBOOK.STATE HOUSE KENYA