Hustler Fund
What It Is Hustler Fund?
Hustler Fund fulfills one of the promises of the Kenya Kwanza manifesto 2022.. The fund will be anchored on Public Finance Management (Financial Inclusion Fund) Regulations, 2022.
The object and purpose of the Fund shall be to innovate, develop and deploy bottom-of-the-pyramid financial services and products that are affordable, accessible and appropriate for the unserved and underserved persons, including credit, saving, insurance and investment products.
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*.
How Hustler Fund Works
There are four products available under the Hustler fund, these include:
- Personal Finance – (KSh 500 to KSh. 50,000 depending on your credit score)
- Micro Loans
- SME Loans and
- Start Up
The Personal Finance fund was launched on 30 November 2022. You can sign up / register by dialing *254# on Safaricom, Airtel, or Orange. Alternatively, use the mobile app.
You can check videos on how to sign up for the personal finance fund. You are eligible for Hustler Fund Savings and Loan Product if you are:
- You are at least 18 years
- You have a national ID
- Your SIM card is registered on your network and on MPESA or Airtel Money or T-Kash
- You have used your SIM card for at least 3 months from the date of registration
Where an applicant is a micro, small and medium enterprise, SACCO societies, chama, group, table
banking group or any other association, if that applicant—
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- (i) has all members who are eighteen years of age and above;
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- (ii) is registered by the relevant government institution; and
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(iii) meets any other conditions as may be determined by the Board*.
The funds will be availed in three different forms:
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- Loans to individuals (Ksh500 – Ksh50,000)
- Loans to groups (Ksh50,000 – Ksh10 million)
- Loans to small enterprises and co-operatives (This will be available from February 2023).
Interest rates for Hustler Fund
The interest rate is 8% per annum, coming to around 0.022% per day. This is a very competitive rate compared to other digital lenders.
Hustler Fund and Pension Contribution
To encourage a saving culture, 5% of your loan amount will automatically be deducted and credited to your saving account. For instance, if you borrow and get approved for a loan of Ksh100, you will receive Ksh95 while Ksh5 will be held in savings.
Of the withheld amount, 70% of it will be saved for pensions (Ksh3.5) in our example – while 30 percent (Ksh1.5) will be held in the Hustlers Fund’s short-term account.
For borrowers who are not formally employed, every contribution made to the savings will be matched by the government – on a 2:1 ratio.
This means if you contribute Ksh5 to the fund, the government will top up your savings with Ksh2.5 and your total pension will be Ksh7.5
Updated Terms and conditions on Hustler Fund website
*This is based on the proposed Financial Inclusion Fund-Regulation 2022
Last updated: 5th December 2022