The Savings and Credit Co-operatives Societies (Saccos) will have been left out of the disbursement of the Hustler Fund. The government launched the second product of Hustler Fund, the Hustler Group Loan, which will now be accessible to Kenyans digitally. Earlier government officials had indicated the second phase of the Fund was to be distributed through select banks and saccos, among others.
Saccos will now have to offer competitive loan products to compete with the hustler fund.
While launching the Hustler Fund during the 60th Madaraka Day celebration, President William Ruto noted the Hustler Fund is on its way to becoming the biggest financial institution by the number of borrowers and active loans effectively. “The Hustler Fund also turned around the country’s fintech, transforming it from a predatory ecosystem to a more responsible one. As a result, Kenya’s digital economy has received a tremendous shot in the arm as demonstrated by reports that Safaricom alone has enrolled at least 2 million new subscribers into its financial ecosystem courtesy of the Fund,” he said.
The second product of the Hustler Fund, the President said, will usher unique collective-driven competitive market enterprise to the online domain.
He noted that the total number of digital transactions stood at 42.5 million, through which 20.2 million Kenyans accessed nearly KSh30 billion and repaid KSh19.7 billion, with 7 million being repeat customers.
“Not a single shilling has been stolen through corruption, and borrowers do not need to know anyone, bribe any official or go through complex bureaucratic procedures to access the Hustler Fund. They only need a device, a little airtime and a few minutes, and they are able to get money wherever they are,” he said.
The launch of the group loan product took place against the backdrop of the phenomenal success of the Hustler Fund Personal Loan product.
“I expect that this product will encounter even greater appetite from the market.”
Group members’ credit scores will determine the amounts they can access, and the group will be the collateral. “This means that your conduct as an entrepreneur, and as a member of community will begin to define your creditworthiness,” said President Ruto.
Groups will be able to access up to Ksh2,000,000.
