Majority of Hustler Fund borrowers are men, report reveals
The Ministry of Co-operatives & Micro, Small and Medium Enterprises (MSMEs) has released its findings regarding the borrowing pattern of the Hustler Fund.
The data indicates that the 16.76 million subscribers, 53 per cent of the borrowers are men while 47 per cent are women.
In terms of age, the youth who fall between 18-29 years constitute 38.5 per cent of the borrowers, those between 30-39 constitute 28.8 per cent of the borrowers, while 17.5 per cent of the borrowers are aged between 40-49 per cent. On the other hand, the repayment rate of the hustler loan stands at 69 per cent.
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“Nationally, the repayment rate stands at 69 per cent. We’re building a very good story backed by data. I am particularly impressed by the positive attitude shown by the majority of the beneficiaries,” Cabinet Secretary for Labour Simon Chelugui said.
So far, Sh31.5 billion of the fund has been disbursed, while loan repayment stands at Sh21.2 billion. The savings account now stands at Sh1.5 billion.
President William Ruto launched the fund in December last year, fulfilling one of his promises to introduce the cheapest loans targeting small business people. The Head of State then launched the second product of the fund during the celebration of Kenya’s 6oth Madaraka Day.
“To promote inclusion, the Hustler Fund is going to deploy groups such as chamas and saccos to overcome exclusion and barriers to participation in credit, savings, social security, health insurance and other socio-economic amenities. This is how we will use policy and technological innovation to mainstream our way of life. We are committed to leveraging fintech in ensuring that no one is left behind in the financial and entrepreneurial inclusivity revolution,” President Ruto said.
The fund, which comprises four products: personal, micro business, SME, and start-up loans, can be accessed by dialing *254#. Kenyans have been asked to pay their loans in time in order to increase their borrowing limits.