Monday, February 26, 2024

Kenyans shock over low hustler fund loan limits

By Thursday 8.45 am Kenyans had borrowed Sh.408 million from the Hustler Fund.

According to figures released on Thursday by Cooperatives and MSMEs Cabinet Secretary Simon Chelugui, over 1.14 million Kenyans have registered for the fund.

The loans accessed via USSD code *254# saw Kenyans receive between Sh.500 and a maximum of Ksh.50,000 for individual borrowers.

But many Kenyans are now complaining on the low loan limit.

Low limit

Which business can I start with Sh.500?

This was the question taking rounds in social media as they received the funds saying it was not able to help them start businesses.

Netizens complained on the loan limits for the product were determined by the borrower’s credit score.

According to the Government the increase in limit will be dependent on the individual customer’s performance on consistent loan borrowing and repayment on time.

The limit shall be reviewed and adjusted based on the borrowing and repayment history of previous Hustler Fund loans taken.

The fund which was launched on Wednesday by President William Ruto, is meant to give Kenyans access to financing at 8 percent pro-rated basis or a daily rate of 0.002 percent.

The initiative was set to improve financial access to credit for personal loans, and micro, small, and medium-sized enterprises (MSMEs) loans.

Austine Ogalo
Lake Region Bulletin is your one stop multi-media platform for news and stories from the Lake Region counties of Kisumu, Siaya, Homabay ,Migori, Siaya, Kissi,Nyamira, Vihiga, Kakamega, Busia, Bungoma, Trans Nzoia, Nandi, Kericho and Bomet

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