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Hustler fund borrowers to access savings after one year

30 per cent of the total money saved will be accessible.

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Kenyans who borrow ‘Hustler Fund’ can only access their savings after one year, Cooperatives and MSME CS Simon Chelugui has said.

Chelugui, however, explained that only 30 per cent of the total money saved will be accessible.

The remainder, which is 70 per cent, will be saved for the long-term up to the retirement age of 60 years.

“Five per cent of the amount one has borrowed is deducted and deposited into a savings account and then it is split into long-term and short-term,” the CS said.

“Apart from ensuring that ordinary Kenyans are cushioned from predatory digital lenders, this fund is geared towards inculcating a saving culture, especially among the 16 million Kenyans who are not in formal employment,” Chelugui said.

He told the Star that savings are in a fixed account and the contributor enjoys interest.

“Interest benefits go to the contributor just like any savings or pension investment,” the CS said.

NSSF, Chelugui said, has been incorporated to help in the management of the savings account.

A total of Sh740 million from 25 million transactions have so far been saved.

From the current trend, it implies that in the last 20 days, Sh8 million has been saved daily.

Borrowers have also repaid Sh6.8 billion, translating to about 50 per cent.

“We have directly touched more than 18 million Kenyans through the fund and we are happy with the progress we are making,” the CS said.

Some 5.3 million Kenyans have so far borrowed more than once.

Chelugui said borrowers have also pocketed Sh14.8 billion.

The loan limit has already been reviewed with those who qualified for Sh500 now qualifying for more than Sh900.

The review, the CS said, was based on the individual’s repayment record.

The fund, launched by President William Ruto on November 30, is the biggest campaign promise by the Kenya Kwanza administration targeting ordinary Kenyans.

“The second product of the Hustler Fund which targets saccos, groups, startups and chamas will be launched next month,” Chelugui said.

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