Implementation Path for the Hustler Fund and how MSMES/SMES can tap into the Fund

The President, Dr. William Ruto in his manifesto pledged to rollout the KES 50 billion hustler fund dedicated to the capitalization of micro, small and medium-sized enterprises (MSMEs). We anticipate that the target roll out point may be through chamas, SACCOs and cooperatives over commercial banks. The credit and savings product will help in lowering the cost of credit for small businesses, ensuring that everyone can borrow money at a reasonable rate without the need for collateral.

Speaking at the inauguration of Thiba Dam in Kirinyaga, the president stated that the Hustler Fund will be operational by 1^st December 2022 with less than 10% interest rates. To be able to access the loans, one is required to register a chama, SACCO or Cooperative which will act as their primary guarantors. Some of the perceived benefits of the hustler fund include:

1. All borrowers of the platform will not only access affordable credit but also participate in short-term saving plans and long-term pension planning; and
2. Ratio at which savings made by Kenyans on the platform will be merged by the government as dictated by the programme with every saving made by borrowers merged by the government on a 2:1 ratio to a level to be determined by the programme. This is a huge return in a market where lenders are offering 3.46 percent on savings.
3. Savings and credits societies/cooperatives are bound to see a bump in activities particularly a spur in borrowing.

In addition to financing MSMEs, the government will set aside 5% of the hustler fund, amounting to Sh2.5 billion per annum to finance local technology startups. There will also be specific allocations for special groups such as persons with disabilities, women and financing to the nascent electric motorcycle assembly industry in anticipation of the transition to clean transport.