Over 6 million Kenyans who have successfully repaid their loans will have their credit limits beginning from February 2023. All Hustler borrowers will each be assigned a financial grade.
“At the end of this month, we will also be launching a Hustler micro-credit product where SACCOs, Chamas, Women Groups and other financial firms can borrow for onward lending to clients or members,” said Dr William Samoei Ruto-Kenya’s Head of State.
He made the above disclosures while presiding over the official opening of the KSh 89 million Police SACCO stadium at the CID Training School in South C-Nairobi. The event also marked 50 years since Kenya National Police DT SACCO was established.
President William Ruto said that while 18 million Kenyans have joined the Hustler fund, 14.2 million are actively serving their loan products, while some 800,000 have repayment challenges.
“We are confident that this number will soon catch up with the rest who are already repaying their loans. Out of the 14.2 million Kenyans who are servicing their loans, we have identified 6 million Kenyans out of this number, to increase their credit limits. We will do a review every four months to increase credit limits of successful borrowers. At the end of February 2023, every borrower of the Hustler fund will be assigned a financial grade. We will also be launching the Hustler fund micro-credit product where SACCOs, Chamas and other large financial institutions can borrow for on-lending to members and customers,” said President Ruto
The Hustler fund is a creation of the Kenya Kwanza administration and has been designed to provide an opportunity for those locked out of the formal financial system to access credit and savings facilities.
“Over the past 110 years, Kenya’s co-operative movement has grown into an iconic institution, anchoring several drivers of social economic transformation, including a savings culture, financial inclusion, mobilization of capital on a significant scale and availability of affordable credit for Kenyans from all walks of life,” said President Ruto.
Over 32% of Kenya’s National Savings comes from the co-operative movement and SACCO ecosystem, significantly contributing to Kenya’s national development.
“This is the reason for me setting up a ministry that will be in charge of the affairs of the co-operatives sector as well as all medium and small micro enterprises. We want all these firms to use government support so as to grow, create linkages and support the development of our country,” said President Ruto.
Available figures indicate that at present, 14 million Kenyans have mobilized a total of KSh 730 billion in savings through the SACCOs. This is a deep pool of capital usually invested in various assets, instruments and projects as well as other ventures to generate a good return.
Additionally, loans amounting to KSh 700 billion are being serviced by SACCO members, who have taken advantage of the comfortable terms to invest in income generating projects and other welfare enhancing endeavours.
The flexibility and affordability of credit facilities offered by the SACCO sector and the collective and inclusive nature of its facilities offer greater returns to members in making transformative investment decisions.
