Hustler Fund borrowing hits Sh14 billion mark
Kenyans have borrowed Sh14 billion from the Hustler Fund kitty two months after its launch.
According to a recent report by government, the Fund continues to gain popularity in the country.
Latest details on disbursements through the Financial Inclusion Fund (Hustler Fund) show that in a period of 22 days since December 20, 2022 Kenyans borrowed Sh4 billion, reflecting over Sh1 billion in average weekly disbursements.
The official indicated that a total of 18 million Kenyans had opted into the Fund by Thursday, beating its initial target to reach out to 17.6 million Kenyans.
“Of the Sh14 billion disbursed so far, Sh8.8 billion has come from the kitty,” the official said, during an update on programs different government agencies under the General Economic and Commercial Affairs (Geca) Sector are undertaking.
The official said as the amount Kenyans are borrowing goes up, so has the repayment which is at Sh6.3 billion, about 45 percent of the Fund’s loan book.
“The figures we have shown were that the need of the small loans that we have been disbursing, between Sh500 and1,000 due to the interest they have generated. Equally, repayment records are positive showing Kenyans want to grow themselves,” the official said.
Other details also show that a total of Sh711 million had been saved through the Fund by Thursday, constituting the 5 percent borrowers are deducted from the amount they borrow.
President William Ruto recently announced the Hustler Fund will be increasing credit limits on January 30, 2023.
“We will in February move to phase two of the Hustler Fund where we will start lending saccos and chamas,” the president said in one of the interviews.
During his campaigns, the president promised that the Hustler Fund would be borrowed at free interest.
However, after being sworn-in as the president, Ruto claimed that there is no free money in and that borrowers would repay back the money with low interest.
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