"There will be no intermediaries for the personal finance product. It will just be the hustler and his or her phone. No registration is required, borrowers will only be required to dial a code," CS Chelugui said.
The CS further divulged that the fund will become active on November 30, 2022, after President William Ruto launches it officially. Chelulgui further said that money available for lending will range between Sh500 and Sh50,000.
He stated that borrowers will be required to repay in 14 days of which the 8 percent interest will be calculated pro-rata or on a daily basis.
“This fund is a saving component. Every time one borrows, 5 percent of the amount goes to a saving scheme where the money earns interest, and for every Sh2 saved, the government adds Sh1,” Chelugui said.
The Fund will be working with the leading mobile network operators, Safaricom, Airtel, and Telkom to deliver the funds. A joint call center that will disseminate information and respond to issues and questions of borrowers will also be set up to address the same.
Hustler Fund as envisioned by President William Ruto aims at making affordable financial support to part of the population that has been left behind for too long financially. It seeks to boost national savings and promote the hustlers’ businesses as well as cultivate the culture of saving among Kenyans.
Other products that expect to be launched at a later date are Micro Loan, SMEs Loan, and Start-Ups Loans which will require intermediaries.