The Hustler Fund, the government-backed credit initiative aimed at expanding access to affordable loans, has disbursed over Ksh.70 billion since its launch in November 2022.
This was revealed by Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya while addressing senators during a plenary session at Parliament Buildings on Wednesday.
Initially designed to serve Kenyans locked out of formal credit systems especially those blacklisted by credit bureaus the Hustler Fund offers microloans ranging from Ksh.500 to Ksh.50,000. The loans are issued at an 8% pro-rated interest rate, translating to a daily rate of 0.002%.
According to Oparanya, the fund has now reached more than 25 million beneficiaries, with women making up 48% of that number.
In December, during the fund’s second anniversary, President William Ruto unveiled a new tier dubbed the ‘loan bridge’ to reward consistent borrowers. Under this tier, qualifying individuals can access increased credit limits of up to Ksh.150,000, based on their repayment history. Oparanya confirmed that two million borrowers have already moved into this enhanced loan category.
Beyond credit access, the fund also incorporates a savings component. Five percent of every loan issued is automatically channeled into savings split into 70% for long-term savings and 30% for short-term needs.
Despite its broad reach, the Hustler Fund continues to face significant hurdles. Oparanya cited inadequate funding and rising default rates as key challenges threatening the sustainability of the program.
