More than 15 million Kenyans will benefit from the newly-launched Financial Inclusion Fund. They will only need to dial *254# to access Hustlers Fund starting Thursday, following its official launch by President William Ruto.

President William Ruto said the rollout was part of the Government’s plan to support Kenyans with products that are responsive to their enterprises. More commonly referred to as the Hustler Fund, the President said the facility would also liberate people from predatory lenders.

To be eligible for the fund, one must be a Kenyan citizen aged 18 years and above, with a valid Identification Card and Registered Mobile number with mobile network providers like Safaricom, Airtel, and Telkom.

“We are establishing a culture of saving, investment, and social security,” he added.

He said the government was keen on creating opportunities for millions of people at the base of the wealth pyramid.

The Government will capitalize on the Fund — made up of personal, micro business, SME, and start-up loans — by allocating KShs 50 billion a year over the next five years.

On Wednesday, the President launched the Hustler Fund Personal Loan product, which enables borrowers to access up to KShs 50,000 at an annual rate of eight percent.

The rest of the Hustler Fund products, the President added, will be launched between January and May next year.

Deputy President Rigathi Gachagua, who was also at the launch of the Fund at the Green Park Terminus in Nairobi, said more affordable credit would promote borrower confidence.

“It will also inject significant amounts of money into productive activities throughout the economy,” explained Mr. Gachagua.

With a 14-day repayment period and an annual interest rate of eight percent calculated per day, a customer who borrows KShs 500 will pay back KShs 501.53 after 14 days, representing KShs 1.53 in interest.

When a customer borrows, the approved loan is sent to their mobile money account, deposits 95 per cent of it in their money wallet, and places 5 percent of it in their savings account.

The five per cent that goes toward the savings plan is split into 30 per cent for short-term savings and 70 per cent for long-term (pension) savings.

If the loan is not paid back within 14 days, the customer’s credit rating is affected, and they are given an additional 15 days. If the loan is still not paid back, the interest rate increases to 9.5% per year. The Hustler Fund account is frozen and the borrower loses all accumulated credit scores after more than 30 days of default.

There will be no Credit Reference Bureau listing in case the loan is defaulted, hence this default will not affect the person’s credit rating with other creditors.

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