Rédaction Africa Links 24 with Kenyans.co.ke
Published on 2024-02-19 10:59:27
The National Treasury has revealed its intention to bolster the Hustler Fund by expanding its offerings to provide additional enterprise and business facilities for existing mama mboga and boda boda saccos. This strategic move, outlined in the 2024 Budget Policy Statement, aims to build on the already achieved gains, with Ksh151 million disbursed to over 50,000 active groups in accordance with the initial vision of the Hustler Fund’s group product.
While the government’s commitment to providing additional financial support to mama mbogas and boda riders is commendable, the specific requirements for obtaining these financial products and the amount allotted to each sacco were not disclosed. However, the government’s Budget Policy Statement provides insight into its broader plans to support micro, small, and medium-sized enterprises (MSMEs), including the rationalization of business licenses and the establishment of MSME Business Development Centers, industrial parks, and business incubation centers.
President William Ruto, during his campaigns in 2022, highlighted the vulnerability of low-income earners such as mama mbogas and boda riders to unscrupulous lenders who impose exorbitant interest rates. The introduction of the Hustler Fund was aimed at addressing this issue by offering loans at favorable rates. President Ruto emphasized the importance of liberating ordinary Kenyans from shylocks, promoting a culture of saving, investment, and social security.
In June 2023, President Ruto took a significant step by launching the second phase of the fund, targeting chamas. Through the Group Micro Enterprise Loan products, Kenyans now have access to loans ranging from Ksh20,000 to Ksh1 million. President Ruto underscored the transformative potential of this financial platform, highlighting its streamlined and accessible loan application process.
By November 2023, the fund had disbursed Ksh39.7 billion to Ksh21.8 million people, reflecting its substantial impact within a relatively short timeframe. Additionally, President Ruto announced an increase of up to 100% in the loan limit for consistent borrowers from the fund.
For individuals interested in applying for loans from the Hustler Fund, the process is facilitated through a *254# USSD code or mobile applications. Applicants can select the desired amount within their limit, confirm loan details, and complete the process by entering their mobile money PIN. Upon completion, they will receive an SMS notification confirming the transaction and loan details.
The government’s commitment to enhancing the Hustler Fund and expanding its support for micro-entrepreneurs is a positive development that aligns with efforts to stimulate economic growth and empower individuals in the informal sector. With continued transparency and inclusive access to these financial resources, the fund has the potential to catalyze entrepreneurial endeavors, strengthen financial resilience, and contribute to a more vibrant and inclusive economy.
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