President William Ruto has announced that the government will award Kenyans who have been saving through the Hustler Fund a matching amount of money saved in their accounts.
Speaking during the celebrations of the fund’s first anniversary in Nairobi, Ruto said that Kenyans who have borrowed for a minimum of five times would have the money in their accounts by Friday, December 1 morning.
The top-up, according to Ruto would be available for Kenyans who had demonstrated commitment to the fund by religiously borrowing the fund.
“Today is the day you are going to get money,” Ruto stated.
“1.2 million Kenyans by December 1 morning will have a matching fund in their savings. If you have borrowed five times will have their savings matched by 2:1 so that we can keep our promise.”
How the Hustler Fund top up will work
While breaking down the top up criteria, the President explained that a person who had saved Ksh6,000 and above, for example- would have his account topped up by Ksh3,000.
Those who had saved an amount below Ksh6,000 would also have their savings increased by an equivalent amount, according to the President.
He went on to give an example of Harrison Kenga, a Tuk Tuk rider who had been singled out as one of the most consistent borrowers of the fund.
According to Ruto, Kenga had borrowed more than Ksh700,00 and saved Ksh35,730 over the period.
His savings, consequently, would be topped up by an additional Ksh3,000 taking the money in his account to Ksh38,730.
In addition, the President announced that the government will expand the limits for Kenyans who had been borrowing the fund for more than 10 times.
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According to the President, limits for such persons would be raised by 100% doubling their current limit.
In his speech, the President announced that 1.2 million Kenyans would have their limits increased by an additional amount equivalent to their current limits.
“Those who had a limit of Ksh5,000 will have a limit a new limit of Ksh10,000,” he stated.
For borrowers who had borrowed for five to 10 times, their limits would be increased 60% while those who had borrowed between 2 to 5 times would have their limits increased by 40%.
Fund borrowers to withdraw savings
Further, the President announced that borrowers would have access to 30% of their savings beginning Thursday, November 30.
The remainder 70%, according to the President would be placed in a long-term savings account for the borrowers.
“You can withdraw 30% of your savings today,” he stated.
However, the President added that the borrowers had an option of leaving the 30% in the accounts.
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According to the President, borrowers who leave the money in the accounts would have their limits increased on the basis of the savings in the account.
The move, Ruto said is aimed at encouraging a savings-based borrowing system.
The President made the announcement at exactly one year since the flagship project of the Kenya Kwanza government was launched.
Also in attendance were a host of government officials including Deputy President Rigathi Gachagua and Cooperatives Cabinet Secretary Simon Chelugui.
