The Kenyan government has ramped up efforts to recover billions of shillings in loans disbursed under the Hustler Fund, a scheme launched last year to support small businesses and individuals.
This initiative comes in response to a surge in loan defaults that threatens the fund’s sustainability.
Borrowers who have defaulted for over a year are now receiving notices to repay their loans or face penalties. The state aims to reduce the size of the unpaid loans, which stood at Ksh9.9 billion as of October last year.
The Hustler Fund provides loans to individuals for a tenure of 14 days at an interest rate of 8% per annum.
Despite the fund’s noble intentions, the high default rate, recorded at 27% by the National Treasury last year, poses a significant challenge. This default rate is the primary obstacle undermining the fund’s viability.
Hustler Fund Loans
According to the Hustler Fund’s website, 23,000 individual borrowers have accessed 52.94 billion shillings in loans. Additionally, 53,724 groups have collectively received 179.29 million shillings from the fund.
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As the government steps up its recovery efforts, the focus remains on ensuring the fund’s long-term sustainability and its continued support for small businesses and individual entrepreneurs across Kenya.
Hustler Fund, an initiative by President Wiliam Ruto, received recognition for changing the lives of Kenyans through various programs and services.
Launched in November 2022, the Fund received the award from Small Business Awards (SBA) – established to recognize key supporters of Small Businesses in Kenya.
Hustler Fund was launched to help cushion and mitigate financial shocks for this informal sector which accounts for more than 80% of the workforce and contributes over 33% of the Gross Domestic Product (GDP).
How to repay Hustler Loan
To repay your hustler fund follow these steps.
- On your mobile phone’s dial pad, type *254#.
- Select option 2 (Repay Loan).
- Select whether you want to repay the full or partial amount (Option 1 or 2).
- If you choose to repay the full amount, confirm and enter your M-PESA pin to repay with M-PESA.
- If you choose to repay a partial amount, enter the amount to pay and enter your M-PESA pin and send.
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Once the transaction is through you will receive messages from both M-PESA and Hustler Fund.
Repay your loan on time to increase your chances of limit increase.
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