The Cooperatives and Micro and Small Enterprise Cabinet Secretary, Simon Chelugui, has announced that Kenyans who have been actively participating in the Hustler Fund are set to reap the rewards of their financial endeavours as they commence the redemption of their hard-earned savings this November.
The announcement was made during a recent press conference where Chelugui unveiled the promising prospects of the savings and loan program.
Chelugui revealed that an impressive sum of Sh1.8 billion had been diligently saved by the fund’s contributors since its inception.
The Hustler Fund, a pioneering initiative under President William Ruto’s pilot project, has already disbursed a staggering Sh36 billion in loans to over 22 million Kenyan citizens since its launch in November of the previous year.
“We have disbursed over Sh36 billion to 22 million Kenyans, and we have also a saving component of Sh1.8 billion,” declared CS Chelugui, highlighting the substantial impact of the fund on the nation’s economic landscape.
The Cabinet Secretary went on to elaborate that the first savers would gain access to 30 per cent of their accrued savings on November 1 of the current year, marking a pivotal moment for those who have invested their financial future in the Hustler Fund.
In a significant policy shift, Chelugui emphasized the government’s commitment to transform the borrowing landscape by removing traditional security features.
Instead, the focus will shift towards cultivating the character of borrowers, emphasizing trustworthiness and prompt repayment.
“We have done away with the traditional securitization of borrowing. No more security… We are pioneering credit scoring; the character of the borrower to understand that if you borrow, you will need to pay. And if you borrow frequently and you repay on time, your credit score will go up,” Chelugui explained.
Furthermore, Chelugui indicated that these innovative changes would enable the government to refer individuals with exemplary borrowing behaviour to esteemed financial institutions for larger loans, thus creating a pathway to financial empowerment.
“In the end, we can now transfer that information to any leading financial institution, which can use that information to give you more money,” he affirmed, underscoring the far-reaching implications of these developments.
Chelugui reiterated the fundamental purpose of the Hustler Fund, describing it as a “common man’s fund” designed to uplift and mentor Kenyans who may have faced unfortunate disadvantages, ultimately reintegrating them into the financial cycle