The National Treasury revealed that savings made from every 5 per cent deduction on every hustler fund loan will be wired to the Kenya National Entrepreneurs Savings Trust (KNEST).
Speaking to the media on Wednesday, March 14, the National Treasury Principal Secretary Chris Kiptoo stated that KNEST has two main savings channels that were inclusive.
He explained that the savings channel would include the 5 per cent borrowed from the hustler fund and another channel for individuals who wanted to save even without borrowing from the hustler fund.
“The monetary savings channel will anchor the savings component of the financial inclusion which is the hustler fund.
“There is the other one that is voluntary. These are the voluntary savings for Kenyans who do not wish to borrow but want to take advantage of the savings mechanism,” Kiptoo stated.
Additionally, the PS stated that KNEST was a government-owned personal pension scheme regulated by the Retirement Benefits Authority (RBA).
At the same time, Simon Chelugui, the Cooperatives Cabinet Secretary, explained that 30 per cent of the savings would go to short-term savings that could be accessed within a year.
“We take 5 per cent of every borrowing and take it to savings. 70 per cent of that savings goes to the long-term savings plan.
“30 per cent of that savings goes to a short-term savings plan meaning you can access your money within one year,” Chelugui stated.
According to the CS, the savings from the hustler fund loan were at Ksh1.1 billion shillings.
Earlier during the celebrations of World Women's Day on March 2, President William Ruto launched an additional financial inclusion program of the hustler fund known as the Biashara Loan.
According to the president, the loan would target Micro Small and Medium Enterprises (MSMEs) with needs of capital ranging from Ksh10,000 and Ksh200,000.
"There will be loan products of three months, six months and nine months - depending on the nature of your business," Ruto announced.
Additionally, on Friday, February 3, the Head of State announced the issuance of a credit score to borrowers of the Hustlers Fund stating that borrowers would get better grades if they repaid their loans on time.
At the same time, Ruto announced the increase of the loan limits for the 6 million Kenyans noting that some borrowers would enjoy double the amount they previously accessed.
"Some of you will even access double of what you have been accessing, some of you will access an additional 80 percent of what you have been accessing,” Ruto announced.