Nairobi, Kenya – In a groundbreaking move to enhance financial inclusion, President William Ruto announced a substantial increase in Hustler Fund loan limits, benefiting over two million borrowers.
Speaking at a presidential town hall dialogue on loans and job creation at the Kenyatta International Convention Centre (KICC) on Monday, December 9, the President emphasized his administration’s commitment to rewarding good credit behavior while fostering financial empowerment.
The Hustler Fund, officially known as the Financial Inclusion Fund, will now allow eligible borrowers to triple their loan limits under a new product called the Bridging Loan. President Ruto outlined how this initiative will benefit borrowers who exhibit responsible credit practices.
“For example, those currently eligible for Ksh50,000 can now borrow up to Ksh150,000, while those at Ksh5,000 can access up to Ksh15,000,” the President explained. “However, this increment is conditional on individual borrowing behavior—poor credit practices will result in no limit increase.”
New Lending Terms Introduced
In addition to increased limits, the President unveiled updated lending terms designed to improve flexibility and borrower benefits. The Bridging Loan product introduces a 30-day repayment term, an extension from the previous 14-day term for personal loans. Borrowers also have the option to roll over their loans for an additional month at an annual interest rate of 8%, with extended loans attracting a slightly higher rate of 9.5%.
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The initiative also incorporates a behavioral credit rating system, ranging from A1 (Excellent) to C3 (Poor), grouped into nine bands. This innovative system will determine loan limit adjustments and will be recognized by banks and financial institutions, enabling beneficiaries to build robust credit histories.
Celebrating Responsible Borrowing
President Ruto commended the over two million Hustler Fund beneficiaries who have consistently demonstrated positive borrowing practices. The program has recorded an impressive seven million repeat borrowers, underscoring its success in addressing the credit needs of underserved Kenyans.
The Hustler Fund, launched on November 30, 2022, was designed to empower individuals excluded from traditional credit systems due to blacklisting. Offering loans ranging from Ksh500 to Ksh50,000 at an annual interest rate of 8%, the fund allocates 5% of each loan to the borrower’s savings. Recently, a loan product specifically for Small and Medium Enterprises (SMEs) was introduced, targeting two million borrowers with proven credit histories.
Also Read: Bad News To Hustler Fund Defaulters
Fund Impact and Future Prospects
According to the Ministry of Cooperatives and MSME Development, the Hustler Fund has disbursed Ksh57.8 billion in loans to date, with repayments totaling Ksh45.5 billion. While Ksh7 billion remains unpaid, the government has ruled out forceful recovery measures, maintaining its focus on financial inclusivity.
“This initiative represents a progressive step toward empowering millions of Kenyans through affordable credit while promoting financial resilience and inclusion,” President Ruto concluded.
