President William Ruto announced on Thursday that Kenyans who have saved through the Financial Inclusion Fund, popularly called the Hustler Fund, will see a 50% increase in their long-term savings.
Five percent of each loan made through the fund goes toward savings; seventy percent goes toward long-term savings and thirty percent goes toward short-term savings.
Ruto announced that the government will provide 1.2 million borrowers with a matching fund in their long-term savings account on Friday, with the ratio being one shilling for every two shillings saved, during the Hustler Fund's first anniversary celebration in Nairobi.
“Some 1.2 million Kenyans by tomorrow morning will have a matching fund in their accounts. You must have demonstrated that you are truly committed to the Hustler Fund by borrowing five times. If you have borrowed five times and saved Ksh.6,000, we will give you Ksh.3,000,” President Ruto said.
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The president claims that 21.8 million opt-in clients are currently being served by the Hustler Fund, with 7.7 million turning into recurring clients.
“We have disbursed Ksh.39.7 billion, to 21.8 million people. Out of this inaugural disbursement, savings of Ksh.1.98 billion have been mobilized, and total repayments now stand at Ksh 28.75 billion,” Ruto said.
According to him, Kenyans have already saved Ksh. 2 billion on their loans.
In addition, President Ruto announced that customers would now have access to short-term savings through the government, giving them more flexibility and instant rewards for their savings efforts.
The Hustler Fund was established on November 30, 2022, to help Kenyans who were denied credit due to being placed on a blacklist by different credit rating agencies.
It provides loans at an eight percent pro-rated basis, or a daily rate of 0.002 percent, for amounts ranging from Ksh. 500 to Ksh. 50,000.
