President William Ruto's government has successfully disbursed Ksh54 billion through the Hustler Fund, with the number of repeat borrowers exceeding the 8 million mark.
The fund, designed to empower Micro, Small, and Medium Enterprises (MSMEs) and individuals at the economic bottom, has proven to be a transformative initiative despite multiple reports from budget watchdogs highlighting potential foul play.
Moses Banda, an adviser at the Presidential Economic Transformation Secretariat, provided an update on the fund’s progress.
"The Hustler Fund has so far disbursed Ksh54.4 billion with 23.4 million Kenyans borrowing in 20 months. The number of repeat borrowers has hit more than 8 million. Under the scheme, Ksh3 billion savings have been mobilised," Banda stated.
The Hustler Fund, initiated by the government almost two years ago to support MSMEs and economically marginalized individuals, has demystified lending for this segment.
Banda stated that the fund has effectively reintegrated them into the formal economy, enabling access to loans via mobile phones.
"Borrowing has been made easy with millions accessing loans at the comfort of their mobile phones," Banda noted. The simplicity and accessibility of the borrowing process have been key to the fund’s success, making financial services more inclusive.
Banda highlighted the broader impact of the Hustler Fund on the financial dignity and empowerment of the Kenyan population.
"The Hustler Fund has restored the financial dignity of the people at the bottom of the pyramid. It has provided evidence that financing this segment of the population and enterprise is a viable business as they can borrow and repay," he said.
The fund’s inclusive nature has been a critical factor in its widespread acceptance and success.
"The Hustler Fund is also an equalizer as it does not discriminate on the basis of tribe, political affiliation, or gender," Banda emphasized.
The substantial mobilisation of savings and the high repayment rates among borrowers illustrate the fund's sustainability and effectiveness.
The Hustler Fund stands as a testament to the potential of targeted financial interventions in driving economic growth and inclusivity.
An optimistic Banda explained that as the government continues to support and expand the Hustler Fund, the future looks promising for MSMEs and individuals striving to improve their economic standing through accessible and equitable financial resources.
A section of Kenyans across the country have received messages requesting them to repay the money so that they can qualify for more premiums.
