The Kenyan government has announced that millions of Kenyans will have access to increased loan limits as of Wednesday, February 15. The announcement was made by Cooperative Cabinet Secretary Simon Chelugui in an interview on NTV on February 14. According to the CS, nearly 14 million Kenyans had borrowed and repaid their loans as required and would be eligible for the increased loan limits. The government has disbursed an additional Ksh1.9 billion for the funds to enable the increase in the loan limit.
Chelugui said that the increased loan limit would be made available to those who had borrowed consistently from the funds and had been repaying their credit. The CS explained that the increased loan limit was a result of the engagement with the service providers that followed President William Ruto’s announcement. The names of everybody who had done well with the loans have been mapped out, and the increased limit will only go for those who have borrowed and repaid.
The Hustler Fund was launched in December 2022, and 18 million Kenyans have joined the fund. Out of 15 million who have borrowed, 14.2 million are doing well with their loans, while 800,000 are struggling. Kenyans with good credit records will enjoy double the loan limits set for them when they first used the Hustler Fund.
Chelugui also announced that plans to introduce more loan packages to uplift businesses across the country are underway. The Hustler Fund currently has four products, and the second micro-loan is set to be launched by the end of February. The government also plans to launch loans for startups and Small and Medium Enterprises (SMEs) later in the year. The government aims to set a package of Ksh19 billion for the funds.
In addition to increasing the loan limits, President William Ruto has revealed plans to introduce credit scores to the funds to help Kenyans use the funds to access more money and improve the culture of repaying the loans. The financial grade will determine if borrowers are eligible for an increased credit limit, and borrowers will be explained why they qualify for the grade issued to them.
The Kenyan government’s efforts to increase loan limits and introduce credit scores are aimed at boosting the economy by enabling more Kenyans to access affordable credit. The loans are expected to stimulate economic activity by enabling more Kenyans to start and grow their businesses. The Kenyan government hopes that the Hustler Fund will help create more jobs and reduce poverty levels in the country.