Hustler’s financial inclusion plan was announced last year. The credit facility named Hustler Fund is approaching its first anniversary. With this in mind, President William Ruto has promised a review of the Hustler Fund credit limit. Speaking at the unveiling of locally assembled smartphones, the president said he has engaged Safaricom, the Cabinet Secretary of ICT, and “all the other stakeholders“. The discussions revolved around the need to increase the credit limit for those who have been saving on the Hustler Fund platform.
The president was referring to a question from his barber on what it takes for a client’s credit limit to be increased. On this, the president said, ” I was very honest with him, I didn’t have an answer,“. As such it is expected that that the key stakeholders will look into this matter. Currently, clients can borrow between KES 500 to KES 50,000 depending on their predetermined credit score.
The fund is distributed through mobile money channels, which are M-PESA, T-Kash and Airtel Money. President Ruto claimed that the affordable credit facility has made a huge difference to many Kenyans. According to the official website, 21,245,811 customers have registered for the facility. The huge uptake of the credit facility was demonstrated by a 7% growth in mobile money subscribers during the financial quarter in which it was launched. Additionally, M-Pesa witnessed a return of 2 million users due to the Hustler Fund.
Hustler Fund Clients Not Able to Start Businesses
An increase in credit limit is in line with a recent Central Bank of Kenya survey. The survey found there is a need to increase the hustler loan amounts. Increased limits will support the starting of new enterprises as well as boost working capital for existing businesses. As it is today, the current credit limit is mostly used to meet the day-to-day needs by both individuals and MSMEs. Only a few Hustler Fund clients use the facility to start new ventures or expand existing businesses.