List Of Counties With The Highest Number Of ‘’Hustlers’’

Nairobi is the domicile for many Hustlers fund subscribers, with some 1.4 million borrowers having opted into the fund. The amount of money they have borrowed so far stands at 1.14 billion shillings underlining high dependency on loans in the Country’s capital amid the high cost of living.

Data released by the Cabinet Secretary for Cooperatives and MSMEs Simon Chelugui shows Kiambu has the second-highest number of Hustlers fund subscribers at  812,127 (651 million shillings). It is followed by Nakuru, Machakos, and Meru at 594,399 (454 million shillings), 483,707 (354 million shillings), and 449,095(320 million shillings) borrowers respectively.

On the other hand, Lamu, Isiolo, Marsabit, Samburu, and Wajir recorded the least number of borrowing.

Youths aged between 18-29 years account for the highest number of borrowing at 33 percent. Those between 30-39 account for 30 percent, 40-49 (19 percent), 50-59 (10 percent), and 60-6 (5 percent), while 2 percent are above 69 years.

Genderwise, 57 percent are men while women account for 43 percent.

The fund, launched on November 30th by president William Ruto, allows individual borrowers to borrow between 500 shillings and 50,000 shillings at an annual interest of 8.0 percent. This interest rate is favorable when compared to bank borrowing costs of 12.38 percent and annualized M-Shwari charges of 108 percent.

The fund comes as a relief to millions of Kenyans who were unable to access loans after being blacklisted by various credit providers.

There is no CRB listing under the 50 billion shillings kitty, meaning that the defaulter’s credit score with other lenders will not be affected.

Borrowers who have not repaid the loan in 14 days will get an extra 15 days to repay before incurring an annual interest rate of up to 9.5 percent after persistent default spanning 30 days. If the borrower fails to settle the debt after the extension, their Hustlers Fund account will be frozen and the borrower will lose all accumulated credit scores.

Kenyans have only repaid 2.64 billion shillings out of the 9.58 billion shillings the government had disbursed. Some 59.3 percent of the loans had been repaid by December 14, when the loans issued on the first day of the launch were due.

The fund is accessible through USSD code *254#. The USSD code allows borrowers to view the loan limit, interest, and tenure before application. When a customer borrows, the approved loan is sent to their mobile money account where 95 percent of it is deposited in their money wallet, and the remaining five percent is placed in their savings account.

The savings scheme splits savings into 70 percent long-term and 30 percent short-term savings, such that 70 percent of the 5 percent goes into long-term and 30 percent of the 5 percent into short-term. The money is saved at KCB and Family Bank, with the government devising to onboarding the National Social Security Fund to be the long-term custodian of the savings.

Borrowers can access their short-term savings within a year only if they have repaid their loans.

Related Content: Kenyans Are Yet Ro Repay 75% Of Hustler Fund