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How The Hustler Fund Works | Steps To Enroll And Borrow Cash

Since a promise is a debt, through the rollout of the Hustler Fund, we can say that President Willian Ruto has paid his debt. In particular, this is a move that will ensure the dream of financial inclusion is achieved.

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Back in Dec 2022, the president launched the much-anticipated hustlers’ fund — one of his key campaign promises to the millions of unemployed Kenyans.

As well as small-scale traders who form the majority of the country’s electorate. But, President William Ruto was also so keen to remind Kenyans that the money is not free — that they must repay within the stipulated time. Otherwise, if else, they’ll incur a cumulative credit rate or even face a possible prosecution leading to jailing. We’ll update you more on that later on.

According to a statement sent to newsrooms after the meeting (in November 2022), the fund was expected to open up affordable credit facilities and is to be structured in Personal Finance, Micro Loans, SME Loans, and Start-Ups. The fund was launched and rolled out on November 30, 2022, and it’s already circulating.

More so, with loan limits being a minimum of Sh500 up to a maximum of Sh50,000 based on the borrower’s credit score. Technically, the Hustler Fund will attract an interest of 8% annually. Bear in mind, that the Hustler fund is a creation of the draft Public Finance Management (Financial Inclusion Fund) Regulations, 2022.

How The Hustler Fund Works

To enumerate, the Hustler Fund is a digital financial inclusion initiative designed to improve financial access to responsible finance for personal, micro, small businesses, and medium-sized enterprises (MSMEs) in Kenya. A Government fund that lets Kenyan Citizens borrow Money through their cell phones. The Government has given it a start-up capital of Kshs 50 billion.

The Hustlers Fund is revolutionary as its objective is to make affordable credit to sections of the population that have been left behind for far too long. Generally, the Hustlers Fund will lend to businesses at 8 percent a year, the lowest interest ever charged in Kenya. As a result, citizens will be able to start or boost their hustles faster and easier.

More so, without being crushed by predatory lenders, shylocks, and over-the-roof interest rates. Government funding will provide affordable credit for four product categories. When you visit the Hustler fund website, you will be able to see different available products. Each product has a description of what it is for and whom it is designed to help.

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Consider the following:
  • Personal Finance – (KSh 500 to KSh. 50,000 depending on your scoring)
  • Micro Loans
  • SME Loans
  • Start-Up Business Loans

The Hustler fund is important because it provides access to responsible finance for personal, micro, small, and medium-sized enterprises (MSMEs). Especially, by innovating, developing, and deploying bottom-of-the-pyramid financial services and products that are affordable, accessible, and appropriate for the unserved and underserved persons.

Including but not limited to credit, saving, insurance, pension, and investment products. It’s quite different from others in a variety of ways.

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For instance, it has a low-interest rate of 8%, NO collateral required, NO CRB Listing, NO threats, and the like. That said, you can learn all about the Hustler Fund in detail from the official website.

The Hustler fund will work in two ways:
  • first, by providing a digital platform where people find the best deals on financial products; secondly,
  • developing a series of digital tools and resources to help people understand and manage their finances better.

The increase in limit will be dependent on the individual customer’s performance on consistent loan borrowing and repayment on time.

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Perse, the limit shall be reviewed and adjusted based on the borrowing and repayment history of previous Hustler Fund loans taken.

Video Tutorial Guideline: President Ruto Demonstrates How To Apply For Hustler Fund

For your information, the Hustler fund is accessible through the USSD and mobile APP platforms of any of the Mobile Network Operators in Kenya. Whereby, you can easily and quickly register and access the Hustler Fund on any mobile network by dialing *254# or via the mobile app.

The mobile terms and conditions:

  • Hustler Funds TC Safaricom Customers
  • Hustler Funds TC Telkom Customers
  • Terms and conditions for Hustler Fund- Airtel Customers

On one hand, the approved loan will be disbursed to your Mobile Money account. Out of the total approved loan amount, on disbursement 95% shall be deposited to your Mobile Money wallet. And then, the remaining 5% shall be deposited to your savings account scheme of the fund, while 5% of your loan will go to the savings scheme.

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On the other hand, the savings scheme will split savings into 70% long-term and 30% short-term savings. For example, 70% of the 5% will go into long-term (Pension) and 30% of the 5% will go into a short-term savings scheme. You can read reviews from other users to get an idea of what they thought about the product before making your decision.

How much can one borrow?

A minimum of Kshs. 500/=. Out of every Kshs 100 borrowed, Kshs:

  • 95 will go into the borrower’s loan account
  • 3.95 will go to his/her pension account
  • 1.05 will go to his/her savings account

It’s, important to realize, that the loan repayment will be made from your Mobile Money account i.e., Self-payment. It is envisaged that the Hustler Fund will help to improve financial access and reduce poverty. And, just like any other banking system, plans to integrate a direct deposit into a borrower’s account are underway.

In other news, according to a certain standardmedia article, the government says the Hustler Fund loans of up to Sh2.5 million for small and micro enterprises will be ready by end of the month. The loans will be disbursed through saving and credit co-operative societies (Saccos) and commercial banks,  said Co-operatives and SMEs Cabinet Secretary Simon Chelugui.

He told a Nairobi forum of Saccos organized by the Co-operative Bank of Kenya that Saccos will be able to participate in the disbursement of the Sh50 billion Hustler Fund.

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