Win for Mama Mbogas and Boda Riders as Govt Plans New Hustler Fund Categories: How to Apply
The National Treasury has revealed intentions to improve the Hustler Fund, aiming to offer supplementary support and resources for established mama mboga and boda boda savings and credit cooperatives (SACCOs).
According to the 2024 Budget Policy Statement, the government expects that this policy measure aims to enhance the progress already made, supported by government data indicating the disbursement of Ksh151 million to more than 50,000 active groups, aligning with the initial vision of the Hustler Fund’s group product launch.
Nevertheless, the government did not reveal the specifications for these financial products, and the undisclosed amount that each sacco would receive was also kept confidential.
“Building on the progress made, to support MSMEs, the Government will review and rationalize all business licenses, establish MSME Business Development Centre in every ward, an industrial park in each county, and a business incubation center in every TVET institution,” reads part of the Budget Policy statement.
By introducing targeted financial products, small-scale traders (mama mbogas) and motorcycle taxi riders (boda riders) can maximize the benefits provided by the Fund. The Fund was established to provide affordable loans to individuals with low incomes, ensuring they can access favorable interest rates.
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During the 2022 election campaigns, President Ruto highlighted that this group of Kenyan citizens was being exploited by loan sharks and unscrupulous lenders who are notorious for charging excessively high-interest rates on their financial services.
During the initiation of the Fund’s initial stage in November 2022, Ruto disclosed that the daily interest rate was merely 0.002 percent.
“The Hustler Fund will help small business owners, liberate ordinary Kenyans from shylocks and help establish a culture of saving, investment and social security,” Ruto stated.
In June 2023, Ruto initiated the second stage of the fund aimed at Chamas. By introducing Group Micro Enterprise Loan offerings, individuals in Kenya will be able to obtain loans ranging from Ksh20,000 to Ksh1 million.
The leader emphasized that this financial platform would bring about a revolution in how Kenyan citizens obtain financial services. He highlighted that it eliminates the bureaucratic hurdles associated with accessing loans through traditional methods.
In November 2023, Ruto disclosed that a sum of Ksh39.7 billion had been distributed to 21.8 million individuals in the span of one year. Additionally, he declared a 100% increase in the loan limit for those Kenyans who had been regular borrowers from the fund.
How to Apply for Hustler Fund
Individuals in Kenya who wish to apply for loans through this platform need to use the *254# USSD code. This code will guide them to the primary menu.
The mobile applications provide a means to access the loans as well.
Once you access the menu, choose the necessary sum within your approved limit and verify the loan information to proceed.
After completing this stage, input your mobile money PIN to finalize the procedure.
You’ll subsequently get a text message alert verifying the transaction and providing information about the borrowed amount.
Win for Mama Mbogas and Boda Riders as Govt Plans New Hustler Fund Categories: How to Apply
