Kenya’s Hustler Fund, an initiative by President Ruto’s administration, is reshaping the financial landscape by empowering millions in the informal sector and creating avenues for economic growth. Launched in November 2022, the Fund has disbursed KSh 62 billion to over 25 million Kenyans, cementing its role in bridging credit gaps for underserved communities.
In its latest offering, the Hustler Fund introduced the Bridge Loan, a product tailored for borrowers with strong credit ratings. This innovation enables users to graduate from small personal loans to enhanced financing options, unlocking opportunities to scale businesses and invest in larger projects.
According to Ms. Susan Mangeni, Principal Secretary in the State Department of Micro, Small, and Medium Enterprises, the Bridge Loan has already disbursed over KSh 650 million in just three weeks. Borrowers benefit from an extended repayment period of 30 days and a competitive interest rate of 8% per annum.
“This initiative helps borrowers transition to commercial banking, fostering financial literacy, capacity building, and market linkages,” PS Mangeni stated.
The Fund also addresses financial inclusivity by offering a credit repair platform for individuals previously blacklisted by credit bureaus. Additionally, a mandatory savings component allocates 5% of each loan toward long-term and short-term savings, promoting financial stability and planning.
As Kenya’s start-up ecosystem grows, the Bridge Loan provides crucial support to entrepreneurs, addressing capital challenges and enhancing survival rates for new businesses. Combined with ongoing government initiatives like the Start-Up Bill, the Hustler Fund is transforming Kenya’s financial ecosystem into an inclusive and supportive environment for innovation and economic resilience.
The Hustler Fund continues to break barriers, offering low-income earners a pathway to financial independence while driving sustainable economic growth for the nation.
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