Ruto Introduces New Hustler Fund Terms to Reward Good Borrowers
President William Ruto has unveiled updated lending terms for the Hustler Fund, officially known as the Financial Inclusion Fund, marking a significant milestone in its second anniversary celebrations. The announcement was made at the KICC in Nairobi on Monday, December 9, 2024.
The revised terms introduce a ‘loan bridge’ feature aimed at rewarding borrowers with commendable repayment histories. Eligible individuals will now enjoy extended repayment periods and higher credit limits. Borrowers under this scheme can access loans with a 30-day term, compared to the previous 14 days, at an annual interest rate of 8%. Additionally, a one-month rollover option at a slightly higher rate of 9.5% has been introduced.
“This new structure is designed to encourage good borrowing habits and enhance financial inclusion. Borrowers with high credit scores may see their loan limits double or even triple,” said President Ruto during his address.
The new Hustler Fund credit score, ranging from A1 (Excellent) to C3 (Poor), will be used to assess creditworthiness. Repeat borrowers, estimated at over seven million, are expected to benefit the most from this enhanced system.
Ruto emphasized that the initiative aims to connect beneficiaries with formal banking institutions, enabling them to build strong credit histories. The Hustler Fund has been a lifeline for individuals previously blacklisted by credit rating agencies, with over Ksh.57.8 billion disbursed since its launch in November 2022.
Under the program, five percent of every loan is allocated to savings, ensuring borrowers can secure their financial future while accessing affordable credit.
This initiative reaffirms the government’s commitment to fostering financial empowerment for millions of Kenyans.
Ruto Introduces New Hustler Fund Terms to Reward Good Borrowers
