President William Ruto has announced that Kenyans who have invested through the Financial Inclusion Fund, popularly known as the Hustler Fund, will see a 50% increase in their long-term savings.
Five percent of each loan made through the fund goes toward savings; seventy percent goes toward long-term savings and thirty percent goes toward short-term savings.
Ruto said that the government will provide 1.2 million borrowers with a matching fund in their long-term savings account on Friday, with the ratio being one shilling for every two shillings saved.
“Some 1.2 million Kenyans by tomorrow morning will have a matching fund in their accounts. You must have demonstrated that you are truly committed to the Hustler Fund by borrowing five times. If you have borrowed five times and saved Sh6,000, we will give you Sh3,000,” Dr Ruto said during the fund’s first anniversary.
The president said that 21.8 million opt-in clients are currently being served by the Hustler Fund, with 7.7 million of them turning into returning clients.
“We have disbursed Ksh.39.7 billion, to 21.8 million people. Out of this inaugural disbursement, savings of Ksh.1.98 billion have been mobilized, and total repayments now stand at Sh28.75 billion,” added the head of state.
According to the president, Kenyans have already saved Sh2 billion adding that customers will now have access to short-term savings through the government, giving them more freedom and instant rewards for their savings efforts.
The Hustler Fund was established on November 30, 2022, with the goal of helping Kenyans who were denied credit after being blacklisted by different credit rating organizations.
It provides loans at an eight percent pro-rated basis, a daily rate of 0.002 percent, for amounts ranging between Sh500 to Sh50,000.
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