A section of Kenyans are pushing for President William Ruto to make seven changes to his legacy financial programme, Hustler Fund, eight months after its launch.
According to the Micro and Small Enterprises (MSEs) Tracker Survey Report released by the Central Bank of Kenya (CBK) on Friday, Kenyans seek to have Ruto increase loan amounts and repayment time for borrowers.
Kenyans also sought to have the compulsory savings removed. It was also proposed that those with savings be allowed to access their money.
In regard to the interest rate, Kenyans who participated in the survey propose that the Ruto administration reduce the rates to enable them to borrow more from the Fund launched in November 2022.
Removal of blacklisting and repercussions in default cases were also among the proposed changes.
However, many lauded the programme which they indicated had helped them boost their businesses.
"Ease of access was cited by 39.1 per cent of those who borrowed as the main attractive feature in the Hustler Fund. The fact that the Hustler Fund was from the Government gave it credence with a 14.2 per cent approval rating.
"Another 13.9 per cent cited that they don’t see any benefits, while 10.5 per cent of the borrowers cited the low-interest rate charged on it," read the report in part.
Use of Hustler Fund
As per the report, Kenyans in the Micro and Small Enterprises (MSEs) borrowed from the Hustler Fund for their personal use, such as the purchase of household items.
Some have also used the loans to grow their businesses.
"The findings indicate that 54.9 per cent of borrowers are aware of the consequences of default. More Male borrowers and 26–35-year-olds reported knowledge of the consequences.
"There is a need to educate the public to be responsible borrowers who know the consequences of not repaying, and More so that they can differentiate the fund from political handouts," read the report in part.
As of August 2023, over 33 billion has been disbursed for personal loans by the Fund under the management of Cooperative CS Simon Chelugui. Ksh112 million has been disbursed for groups/ saccos.
