Financial Experts Welcome Upscaling of Hustler Fund to Bridge Loan

Kenya is celebrating a major milestone in financial inclusion with the second anniversary of the Hustler Fund, a transformative initiative designed to offer accessible credit to the country’s informal sector workers. Spearheaded by President William Ruto, the Fund has been instrumental in redefining financial access for millions of Kenyans, particularly those at the bottom of the economic pyramid.

Launched in 2022, the Hustler Fund aimed to uplift informal sector workers, who account for more than 80% of Kenya’s workforce and contribute 33% to the nation’s Gross Domestic Product (GDP). In his address on Monday, President Ruto emphasized the government’s unwavering commitment to fostering financial independence through targeted interventions, stating, “The Hustler Fund is not just a financial tool; it is a statement that every Kenyan deserves an opportunity to thrive, regardless of their economic status.”

The Hustler Fund, which started as a platform offering small loans to individuals with no access to formal credit, has undergone significant enhancements since its inception. These upgrades are expected to provide even more opportunities for economic growth and financial empowerment.

Financial experts have lauded the new changes, particularly the scaling up of the Fund to bridge loans, which is seen as a powerful move to stimulate economic transformation. The changes include higher credit limits for borrowers who demonstrate consistent repayment discipline. Furthermore, borrowers can now use their credit scores as collateral to access larger loans, effectively bypassing traditional collateral requirements.

Mr. Peter Macharia Kamau, Founder and CEO of Jijenge Credit Limited, a leading credit-only microfinance institution in Kenya, expressed strong support for these developments. He noted that the new measures would significantly contribute to the economic empowerment of individuals and small businesses. “As we mark this milestone, we welcome the series of enhancements to the Fund designed to reward discipline and encourage economic growth. The extension of repayment windows from 14 days to one month for diligent borrowers will offer more flexibility,” said Kamau.

Jijenge Credit Limited, established in 2014, has been a key player in providing accessible credit solutions for individuals and Small to Medium Enterprises (SMEs). The microfinance institution is licensed by the Central Bank of Kenya (CBK) and has been committed to addressing the growing demand for working capital in the country.

Experts believe that the upscaled Hustler Fund will play a pivotal role in Kenya’s Bottom-Up Economic Transformation agenda by further reducing financial barriers and offering inclusive opportunities for economic participation. The Fund’s success aligns with the government’s broader objective of promoting financial independence and socio-economic growth, especially for those traditionally excluded from formal credit systems.

As Kenya continues to build on the success of the Hustler Fund, the financial sector is optimistic that such initiatives will have a long-lasting impact on economic equity, empowering individuals and businesses across the nation.