Six million hustlers can now access bigger loans
President William Ruto (centre) and Co-operatives CS Simon Chelugui (left) during the commissioning of the Kenya Police Sacco Stadium at South C, Nairobi on February 3, 2023.
Some six million out of 14.2 million Kenyans who registered for the Sh50 billion Hustler Fund will get higher loan limits beginning today, even as President William Ruto revealed that 800,000 loanees are behind in repaying their loan.
The six million are those that have borrowed regularly from the fund and have kept to the repayment schedule.
Since its launch on December 1, the fund has disbursed Sh17 billion to a total of 15 million Kenyans, who have since saved up to Sh850 million.
“18 million Kenyans registered for the fund, out of which 15 million have borrowed some money. Out of this, 14.2 million are regularly servicing their loans, while some 800,000 have challenges, because they have exceeded the time they needed to pay. We are confident that they will catch up with those regularly servicing their loan,” President Ruto said yesterday in Nairobi's South C area during the 50th anniversary of Kenya Police Sacco.
Dr Ruto said the borrowing limit will be based on the recent performance of the borrowers.
The President’s directive means that those who have been settling their loans on time will be enjoying doubled limits from today.
While some will get up to a 100 per cent increase in their loan limits, President Ruto said, the others will be pro-rated depending on their initial limit and their history and volumes of loans with the fund.
The President said the move comes following a plea from a majority of the borrowers who have been complaining about getting a fixed limit for the past two months when the fund was launched.
“From tomorrow (Saturday), those people who have been borrowing from Hustler Fund, we will increase the limit. If you have been getting Sh500 and you’ve paid two to three times, it won’t be Sh500 from tomorrow. You will be getting Sh1, 000, and those at Sh1, 000 you will be getting Sh2, 000,” President Ruto said.
The President said that the step is to ensure that Kenyans borrowing the fund are accessing a limit of Sh50, 000, a plan that was laid during the launch of the fund last year.
Financial grades
He also announced that at the end of this month, every borrower will be assigned a financial grade based on their borrowing and repayment time.
During the celebrations, the President said the flexibility and affordability of credit facilities offered by the Sacco sector facilitate many investment opportunities.
“This is why the Kenya National Police DT Sacco is able to fearlessly pursue radical, but prudent strategic directions and mobilise funds for investment in a project as unique as a sports stadium.”
The Kenya National Police DT Sacco has grown to 70,731 members, with an asset base of Sh47 billion, a Sh40 billion loan portfolio and total deposits of Sh28 billion
The President celebrated the role of cooperative societies in Kenya’s growth, with a total of 14 million Kenyans having saved Sh730 billion in total through Saccos.
“This is a deep pool of capital that is usually invested in various assets, instruments, projects and other ventures to generate a good return,” Dr Ruto said.
At the same, he said, Sh700 billion in loans are being serviced by members of savings and credit cooperative societies.
“The flexibility and affordability of credit facilities offered by the Sacco sector, coupled with the inclusive and collective character of its deliberations, facilitate greater imagination in exploring investment opportunities and stronger confidence in taking transformative decisions,” the President said.
He went on: “The contribution of the cooperative sector to Kenya’s socioeconomic development is undeniable and substantial 69 per cent of Kenyans, directly and indirectly, participate in Saccos and the cooperatives account for 31 per cent of the Gross Domestic Product.”
