World Bank’s Interest in Hustler Fund Borrowers’ Data
On Wednesday, Moses Kuria, the Trade Cabinet Secretary, disclosed that the World Bank had requested to obtain the records of borrowers who have benefited from the Hustler Fund.
Kuria, addressing the audience at the Holistic Productive Capacities Development Programme, pointed out that according to the World Bank, the data likely holds the highest credit rating for Kenyan individuals. This information should also be made accessible to other financial entities such as banks.
“Your Excellency I had a conversation with the World Bank last week and they sent me to you. They said to ask the president to be a little magnanimous and generous and not fall into the temptation of being selfish. I asked them why, and they explained that the best credit score in the republic of Kenya is the one that has been generated by the Hustler Fund,” Kuria noted.
The Hustler Fund was initiated in November 2022, slightly more than a month after President William Ruto’s assuming office. Its purpose is to provide affordable loans to countless Kenyan individuals who are unable to secure financial assistance from traditional banks and other lending institutions.
The fund provides loans that have to be reimbursed within two weeks, featuring lower interest rates in comparison to similar offerings from commercial banks and Saccos.
A three-digit numerical value known as a credit score reflects an individual’s historical credit actions. It aids financial institutions in comprehending how to grant loans, mortgages, and credit cards, as well as in determining the applicable interest rate.
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The scale spans from 250 to 900, with 250 being classified as a poor score and 900 as a favorable score.
Kuria pointed out that the World Bank’s display of assurance was a positive endorsement for a program that has only been in existence for about a year.
Last year, the initial stage of the loan program was initiated, primarily aimed at individuals with limited income who require small loans for basic needs. These loans come with a minimal interest rate of 0.002 percent. The loans are divided into four groups: personal financial assistance, microloans, support for small and medium enterprises (SMEs), and aid for new business ventures.
In June 2023, the leader of the nation introduced the next stage of the fund’s development, with a focus on various collectives like chamas and Saccos.
The next stage involves providing business loans to both individuals and groups, aiming to support small businesses that face difficulties in obtaining capital loans.
“Today we have close to Ksh15 million Kenyans on the Hustler Fund, we have lent Ksh35 billion in the last eight months and we have Ksh7 million using the fund daily,” Ruto disclosed.
World Bank’s Interest in Hustler Fund Borrowers’ Data
