President William Ruto has officially launched the second phase of the Financial Inclusion Fund (Hustler Fund) that targets registered groups.
Speaking in Embu town during the 60th Madaraka Day celebrations, the president said the groups can qualify for loans up to millions of shillings.
He pointed out that the groups will be used as collaterals for the loans with individual members getting the funds according to their credit score.
“I am delighted to launch the second phase of the Fund which aims to fund registered groups.
An individual’s credit score will determine the amount they can access and the group will act as their collateral. This means that your conduct as an entrepreneur and a group member will define your creditworthiness,” said the President.
He said the launch of the group loan product is against the backdrop of the phenomenal success of the personal loan product and expressed optimism that the new product will be widely received in the market.
The president said his government is committed to leverage on financial technology in order to ensure no one is left behind in the financial and entrepreneurial inclusivity revolution.
“We have equalised the formal and the informal system, enabling both to enhance their complementary contributions to job and wealth creation from an equal footing,” Ruto said.
He noted that for the personal loan product, 20.2 million Kenyans have accessed nearly Ksh30 billion and managed to repay Ksh19.7 billion.
“The total number of digital financial transactions currently stands at Ksh42.5 million,” he explained even as he revealed defaulters have a second chance to access the loans once they reform by showing sustained behavioural change.
Ruto termed the Hustler Fund as both transformative and revolutionary, noting that through the number of borrowers and active loans, the fund is on its way to becoming the biggest financial institution in the country. “The Fund has also turned around the country’s fintech by transforming it from a predatory ecosystem to a more responsible one,” he noted, adding further that Kenya’s digital economy received a tremendous shot in the arm as demonstrated by reports that Safaricom has enrolled at least 2 million new subscribers into its financial ecosystem courtesy of the Fund.
By John Majau
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