The National Treasury has announced plans to enhance the Hustler Fund to provide additional enterprise and business facilities for existing mama mboga and boda boda saccos.
As outlined in the 2024 Budget Policy Statement, the government anticipates that this policy initiative is geared at building on the gains the government has already achieved, with government data showing that Ksh151 million has already been disbursed to over 50,000 active groups as envisioned when the government rolled out the Hustler Fund's group product.
However, the government did not disclose the requirements for these financial products. The amount each sacco will receive was also not revealed.
"Building on the progress made, to support MSMEs, the Government will review and rationalise all business licences, establish MSME Business Development Centre in every ward, an industrial park in each county and business incubation centre in every TVET institution," reads part of the Budget Policy statement.
Through the specific financial products set to be introduced, mama mbogas and boda riders can fully reap from the Fund which was introduced to offer loans at favourable rates to low-income earners.
President Ruto during campaigns in 2022 noted that this category of Kenyans was being taken advantage of by shylocks and predatory lenders known for pricing their facilities at exorbitant rates.
While launching the first phase of the Fund in November 2022, Ruto revealed that the daily interest rate was as low as 0.002 per cent.
"The Hustler Fund will help small business owners, liberate ordinary Kenyans from shylocks and help establish a culture of saving, investment and social security," Ruto stated.
In June 2023, Ruto launched the second phase of the fund targeting chamas. Through the Group Micro Enterprise Loan products, Kenyans will have access to between Ksh20,000 to Ksh1 million.
The Head of State noted that this financial platform would revolutionise how Kenyans access finances. He noted that it was free from the bureaucratic process of accessing loans the traditional way.
In November 2023, Ruto revealed that the fund had disbursed Ksh39.7 billion to Ksh21.8 million people within one year. He also announced that the loan limit had been increased by up to 100 per cent for Kenyans who had borrowed from the fund consistently.
How to Apply for Hustler Fund
Kenyans seeking loans from this platform should run the *254# USSD code which will direct them to the main menu.
The loans can also be accessed through mobile applications.
After accessing the menu, select the required amount if it's within your limit and confirm loan details.
Once through with this step, enter your mobile money PIN to complete the process.
You will then receive an SMS notification confirming the transaction and details on the amount borrowed.
