President William Ruto on Wednesday at Greenpark Terminus in Nairobi said that the Hustlers Fund initiative will offer loan defaulters a chance of significance to begin a new chapter in borrowing.
According to President Ruto, the fund will put an end to the exploitation of Kenyan citizens by untrustworthy lenders who have been charging borrowers excessive interest rates.
The Head of State said that currently, there are at least 8 million Kenyans with no access to credit because of their humble background noting that no Kenyan will be excluded from accessing the fund.
In a statement, Ruto said that this is a significant occasion that we have a product that does not need an application, guarantee, or approval by a committee. It just needs a citizen, phone, and track record in order to borrow any amount of money.
Also, the Head of State added that the Hustlers Fund will replace the Traditional Collateral System that has always been constructed for security purposes including Log Books and Title Deeds.
To access Hustlers Fund, Kenyan nationals will follow the procedure by dialing *254# to access the Fund starting December 1, 2022, following its official launch on Wednesday, November 30.
To be eligible for the fund, one must be a Kenyan citizen aged 18 years and above, with a valid Identification Card and Registered Mobile number with mobile network providers like Safaricom, Airtel, and Telkom.
For clarity, one will be required to have a mobile money account that is either Airtel Money, Tkash, or Mpesa, whereby the sim card must have been in use for at least 90 days.
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In addition, the savings are secured even if the mobile phone is lost the Hustler Fund account pin is protected. Once the sim card is replaced, access to the account will be restored with immediate effect.
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The repayment period is two weeks after the borrowing process with an annual interest rate of 8% calculated per day, a customer who borrows Ksh 500 will pay back Ksh 501.53 after 14 days, representing Ksh1.53 in interest.
