With the new government in place, the hustler fund creation is close to becoming a reality. Kenya president, William Ruto has made several statements indicating the fund will be ready by December 2022. Hence, let’s try to demystify hustler fund in Kenya.
What is the hustler fund in Kenya?
Hustler is a Kenyan term that refers mostly to the majority of people running small businesses to make a living. The list consists of small business owners such as mama mboga and Boda-boda riders. Below is a guide on how to start a boda-boda business in Kenya.
Hence, the hustler fund is a pool of money that the government is setting aside to lend to this group of Kenyans. As per the earlier announcement, the government targets to set aside 50 billion shillings for this fund.
Benefits of hustler fund in Kenya
1. Access to funds at low-interest rates- The government has indicated hustler fund will lend money to Kenyans at lower rates than most commercial institutions are giving. Based on the information available, the fund will lend at single-digit interest rates.
2. No need for security– accessing a loan from the hustler fund will not require any security as is the case with most other institutions such as banks. This will make it easier for the majority of Kenyans who lack collateral to access funding.
3. Government support- The government will also target to offer training and support services for the Kenyans benefitting from the hustler fund to ensure the money is utilized well.
How to access the hustler fund in Kenya
Although the fund is yet to actualize, the details available show the fund will be given to Kenyans through various groups or Chamas, co-operatives, and individuals.
An existing platform that offers an almost similar service is the Uwezo fund. It mainly deals with extending unsecured loans to Kenyans from vulnerable groups such as youth and women.
One key thing you should note about the hustler fund is that it is not a grant but a loan. Hence, you have to pay back the money you get with an interest.
The government is planning to eliminate third parties and offer the money directly to beneficiaries through efficient means such as mobile money. A key example of this is the M-Pesa.