The Hustler Fund is now available to citizens, following a promise by the current Kenyan government to implement it within the first few months in office. The fund is a digital financial inclusion initiative designed to improve financial access for personal, micro, small, and medium-sized enterprises (MSMEs) in Kenya.
This fund is accessible through the USSD and mobile APP platforms of the mobile network operators in Kenya.
How the Hustler Fund Works
There are four products available under the Hustler fund. These include:
- Personal Finance – (KES 500 to KES 50,000 depending on your scoring)
- Micro Loans
- SME Loans and
The first installment of this fund is the Personal Finance product, which was launched on November 30, 2022. Limit increase will depend on the individual customer’s performance on consistent loan borrowing and repayment on time.
The limit shall be reviewed and adjusted based on the borrowing and repayment history of previous Hustler Fund loans taken. Loan interest rate is capped at 8% per annum computed on a pro-rated basis.
Approved loans will be disbursed to your Mobile Money account. You will also make the loan repayment from your Mobile Money account. Out of the total approved loan amount, on disbursement 95% shall be deposited in your Mobile Money wallet. The remaining 5% shall be deposited into your savings account scheme of the fund.
The savings scheme will split savings into 70% long-term and 30% short-term savings . It means that 70% of the 5% will go into the long-term (Pension) and 30% of the 5% will go into short-term savings.
Example: Customer borrows KSh 1,000, KSh 50 (5% *1,000) will go into their savings account as below:
- KSh 35 (70% *50) – Will go to the Pension account
- KSh 15 (30% * 50) – Will go to a short-term savings account
Hustler Fund Eligibility
- Kenyan citizen of 18 years of age and above
- A valid national Identification Card (ID)
- Registered mobile number from a recognized Mobile Network Operator in Kenya i.e., either Airtel, Safaricom, or Telkom
- Have a mobile money account i.e., either Airtel Money/M-PESA/T-Kash
- The SIM card in question can/ will only be eligible if it has been in use for more than 90 days.
- Reside and conduct economic activities in Kenya.
- Provide the Location of residence during the onboarding process (where applicable)
How to Register
The customer is required to:
- Sign up for the Hustler Fund platform by dialing *254# or through the mobile app.
- Accept the Terms and Conditions to join the Fund
- Enter Mobile Money Pin
- Upon fulfillment of steps 1-3, an SMS will be sent to notify them of their successful registration and the limit assignment.
- In the event of a failed registration, the borrower will be notified via SMS
Why do they need my M-PESA PIN?
Your Mobile Money PIN protects your hustler Fund account.
If you lose your phone/sim card, this will come in handy. Once you replace your SIM card at your Mobile Network Operator outlet, you will access your Hustler Fund account using your current Mobile Money PIN.
Repayment and Recovery Plan
The loan repayment period shall be 14 days with an interest of 8% per annum.
An example–if a customer borrows Kshs 1,000, he will receive Kshs. 950. In 14 days, the customer will be expected to pay back.
- The borrower may re-pay the loan as a lump sum or in part provided that the full repayment is done within 14 days.
- 15 days after the date of default the interest rate will be adjusted to 9.5% per annum.
- Thereafter persistent default spanning 30 days and over will see you lose your existing credit score and your account frozen.
- Interest continues to accrue, recovery methods will be initiated.