President William Ruto stated that four million Kenyans who have not repaid Hustler Funds loans have the opportunity to triple their limit if they clear outstanding balances.
Speaking at a Town Hall meeting at Nairobi’s Kenyatta International Convention Centre, Ruto stated that the four million borrowers owe money or have not paid on time.
“If they pay their outstanding amounts, the window for them to be moved to the Bridge Loan, which doubles or triples their credit limit exists,” he stated.“
The four million people out there who have not paid their money, they have a chance.
”The Bridge Loan product is intended for recipients who have exhibited responsible borrowing habits. It will offer increased loan limits and a loan duration of 30 days, up from 14 days, with an interest rate starting at 8% per year and a one-month rollover with enhanced interest at 9.5%.
Ruto stated that the administration wishes to have a large number of Kenyans on board.
“Once you pay, we are going to assess you for two months and then graduate you to the Bridge Loan,” the President said.
The President noted that the Huslter Fund intervention aims to remove people’s penalties, blacklisting, and condemnation while also giving them the opportunity to rehabilitate their credit rating.
Since its inception in 2022, the Hustler Fund has offered crucial financial assistance to millions of low-income Kenyans.
Kenyans took out hustler loans in big numbers. As of August 2024, there were approximately 21 million borrowers.
The Hustler Fund has the most active loans in the market, accounting for 45% of active loans in the digital lending business.
In October 2024, the government announced plans to implement a legal framework aimed at loan defaulters.
The proposed procedures seek to collect defaulted loans by withdrawing payments straight from mobile money services such as Mpesa accounts and cell airtime.
The government hopes to recoup Sh7 billion from about 13 million defaulters by October 2024.
