Committed Hustler Fund Borrowers to Enjoy Tripled Loan Limits
In a significant boost for financial inclusion, Hustler Fund borrowers are set to enjoy increased loan limits following the unveiling of two transformative initiatives aimed at enhancing credit accessibility and fostering responsible borrowing.
During the celebration of the Hustler Fund’s second anniversary at the Kenyatta International Convention Centre (KICC) in Nairobi on Monday, President William Ruto launched a behavioural credit rating system and a new product dubbed the Bridge Loan. These initiatives mark a milestone in empowering borrowers and expanding the Fund’s reach.
The behavioural credit rating system introduces a transparent scoring mechanism that evaluates borrowers based on their repayment behaviour. Beneficiaries are assigned scores ranging from A1 (Very Good) to C3 (Very Poor), with nine bands in total: A1, A2, A3, B1, B2, B3, C1, C2, and C3.
“We are assigning a credit score to every borrower so that this becomes their new collateral,” President Ruto announced. He emphasized that borrowers who repay within the stipulated 14-day period would benefit from increased credit limits, with some seeing their limits double or even triple.
The President highlighted that more than two million beneficiaries have demonstrated commendable borrowing behaviour. Their positive credit history will now translate into higher loan limits, based on their creditworthiness. Borrowers’ credit scores will automatically adjust according to their borrowing patterns, ensuring fairness and transparency.
“You don’t have to know the chief, the Principal Secretary, or the President to get a good credit rating—all you need is your phone,” he affirmed.
President Ruto also urged banks and financial institutions to utilize the Hustler Fund’s credit score data to assess customers’ creditworthiness. “Please pick them up and take them to the next level,” he said, encouraging the banking sector to integrate these borrowers into the mainstream financing ecosystem.
The newly introduced Bridge Loan product aims to transition responsible borrowers to formal banking by enabling them to access larger loans with extended repayment periods. Borrowers will establish banking relationships, building a credit history that enhances their bankability. The repayment period for these loans has been extended from 14 days to 30 days, while the interest rate remains unchanged at 8 percent annually.
“Good borrowers will be able to triple their credit limits. Those borrowing KSh 50,000 can now access up to KSh 150,000, while those at KSh 5,000 can increase to KSh 15,000,” the President added.
In its two years of operation, the Hustler Fund has disbursed over KSh 60 billion, benefiting 24.7 million Kenyans. The Fund has also accumulated KSh 3.4 billion in mandatory savings, with 70 percent allocated to long-term savings and 30 percent to short-term savings.
President Ruto announced that long-term savings will now be managed by the Kenya National Entrepreneurs Savings Trust (KNEST), a government pension scheme for the informal sector. KNEST offers competitive returns tied to Treasury Bill rates, currently at 11 percent.
Principal Secretary for the State Department of Micro, Small Enterprises Development, Madam Susan Mangeni, praised the Hustler Fund as a revolutionary financial inclusion tool. “The Hustler Fund is a credit card for Kenyans, especially those at the bottom of the economic pyramid, to access credit and meet their needs with dignity. We are among the first in the region, if not the world, to implement such a deliberate and intentional intervention in financial inclusion space,” she said.
The Hustler Fund continues to position itself as a game-changer, transforming lives and empowering millions of Kenyans to achieve financial independence and prosperity.
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