Conditions To Access ‘Hustler Fund’
Conditions To Access ‘Hustler Fund’
Dr Ruto stated in his Mashujaa Day speech that ‘hustlers’ will have to participate in a pensions program in order to access the cheap credit.
“All borrowers on this platform will also participate in a short-term savings plan and long-term pensions programme. Every saving made by borrowers on this platform will be merged by the government of Kenya on a 2:1 ratio to a level to be determined by the programme,” President Ruto said.
This means that the government is using the fund to increase pension contributions as part of its recent efforts to increase National Social Security Fund (NSSF) contributions from the current Sh200 to around Sh2,000, which the High Court has blocked.
The program’s implementation will reveal whether the previously unknown condition encourages or discourages the disbursement of cheap credit to sectors and individuals who have long been excluded.
He stated the condition while announcing the December 1 launch of the Hustler Fund credit and savings product.
“Already, expectations are very high across the country on our promise to provide a fund that will offer affordable credit to those at the bottom of the pyramid. We are aware that the most significant question in the streets, boda boda parking lots and fresh produce markets is: WHEN will the Hustlers Fund become operational? I have an answer for you today. I will launch this Hustler Fund credit and savings product on the 1st of December this year,” the President said.
While acknowledging that many Kenyans are in desperate need of low-cost credit and have high expectations of Dr. Ruto’s campaign promises, he indicated that credit products would be available to both individuals and businesses.
“Credit products will be available to small businesses on digital platforms at affordable rates to individuals and through chamas, groups, saccos and cooperatives,” he said.
“No citizen will be excluded from the credit system. They will, therefore, be eligible to access credit as they work their way out in paying their loans.”
