Kenya’s Financial Inclusion Fund, formally known as the Hustler Fund, is a flagship digital lending and savings programme launched by the Kenya Kwanza administration in 2022 to extend affordable credit to individuals and MSMEs excluded from traditional financial services.
The fund offers collateral-free loans at 8% annual interest, calculated daily, and integrates a unique savings model that ensures borrowers build financial security while accessing credit.
A key feature of the Hustler Fund is its mandatory savings component, which requires 5% of every personal or bridging loan to be automatically deposited into a savings account. This mechanism enables borrowers to save consistently with each loan they take, creating a financial cushion over time.
For group loans, the full 5% contribution is placed into a shared group savings account, which the group can access only when no member has an outstanding loan.
Beyond mandatory savings, Hustler Fund customers can also make voluntary deposits, allowing them to use the platform as a standalone savings tool even when they do not wish to borrow. All voluntary deposits are placed in the short-term savings account and can be accessed at any time.
Hustler fund short-term savings
Short-term savings function as the borrower’s easy-access account.
Key features:
- Withdrawable any time, provided the borrower has no outstanding loan.
- Built from 30% of mandatory savings.
- Borrowers can make voluntary deposits directly from their mobile money wallets.
- Voluntary savings are fully accessible anytime and earn interest.
- Funds in this account can also be transferred into the long-term savings account by the customer.
This account is ideal for users who want flexible savings that they can draw from quickly for emergencies or short-term needs.
Also Read: Why 26 Million Kenyans Won’t Stop Borrowing from Hustler Fund
Long-term savings
Long-term savings are designed to support financial security in later life.
Access conditions:
- Withdrawable at retirement age (60 years).
- Before age 60, a borrower may access up to 30% of long-term savings every five years.
- Built from 70% of mandatory savings on personal or bridging loans.
These savings accumulate steadily over time and function as a pension-like buffer for future use.
Voluntary savings and interest earnings
Customers who wish to save without taking a loan can opt into the Hustler Fund and deposit money directly into their short-term savings account. These voluntary deposits earn interest and can be transferred to the long-term savings account at any the. All Hustler Fund savings earn a 12% annual interest rate.
Also Read: How Kenyans Can Raise Hustler Fund Limit from Ksh500 to Ksh150,000
The government also offers a one-time matching incentive for long-term savings, contributing at a 2:1 ratio up to Ksh3,000. This reward is intended to boost retirement savings and encourage long-term financial discipline.
How to check and manage your savings
Customers can view and manage their Hustler Fund savings by dialing *254# or using the Hustler Fund mobile app. Through these channels, users can check mini statements, make voluntary deposits, transfer funds between savings accounts, or withdraw from their short-term savings when eligible.
The savings model ensures that every borrower automatically grows their financial base with each loan. It promotes responsible borrowing, strengthens long-term financial planning, and provides immediate liquidity through the short-term savings account.
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