Kenyans tap into their Hustler Fund savings: Sh16.6m withdrawn in a week
In a remarkable surge, Kenyan borrowers from the Hustler Fund have swiftly accessed their savings, with a whopping Sh16.6 million withdrawn within just a week of the government’s announcement allowing such transactions.
The Ministry of Co-operatives and Micro, Small and Medium Enterprises (MSMEs) disclosed that 30 thousand customers, constituting 7 per cent of the total, have already made withdrawals.
The Ministry reported that daily repayments have doubled, witnessing an impressive increase from Sh38.2 million to Sh90.7 million four days after celebrating the first anniversary of the fund.
Furthermore, data indicates that over 30 per cent of repayments are coming from defaulters, highlighting the broad participation in the repayment process.
In terms of disbursements, a total of Sh812 million has been disbursed post-anniversary, with Sh312 million allocated to customers whose limits were enhanced.
Notably, Sh600 million, excluding interest accrued, has been earmarked for short-term savings withdrawals, demonstrating the substantial financial activity within the fund.
Cooperatives and MSMEs Development Cabinet Secretary, Mr Simon Chelugui, shared that the total number of customers who repaid their loans post-anniversary stands at 535,400.
The average disbursements have surged fourfold, rising from Sh41 million to an impressive Sh203 million within four days of the anniversary celebration.
CS Chelugui recently engaged with a prominent Hustler Fund borrower, Mr Harrison Kenga, in Mombasa, presenting him with a brand new tuktuk, fulfilling a promise made by President William Ruto during the fund’s anniversary.
Mr Kenga, the highest borrower with a remarkable limit of Sh50,000, attributed his success to prompt payments and consistency. He encouraged fellow borrowers to repay on time for faster limit growth.
The data unveiled that the top borrower currently holds savings amounting to Sh200,000, contributing to the impressive total savings of Sh2 billion within the fund.
As Kenyans continue to leverage the opportunities provided by the Hustler Fund, the initiative proves to be a dynamic force in shaping economic resilience and empowerment.