Kenyan President William Ruto has announced plans to increase the Hustler Fund credit facility to a maximum of Sh200,000 beginning June, in a move to uplift Micro Small and Medium Enterprises (MSMEs) by facilitating access to affordable credit. The collateral-free credit facility, which will be based on credit history, targets small business operators, including kiosk owners, barbershop operators, and boda-boda operators.
Speaking during the Labour Day celebrations at Nairobi’s Uhuru Gardens, President Ruto emphasized the need to address the challenges of small businesses. To this end, his administration established the Ministry of Cooperatives and MSMEs to help resolve challenges of access to credit. Since the unveiling of the Hustler Fund, Sh27 billion has been lent in just six months, and about 15 million Kenyans have borrowed via the facility.
The increment will see those borrowing access from Sh10,000 to upwards of the Sh200,000 maximum. This increased financial support will also enable small business operators to employ other people, contributing to the country’s economic growth. The President’s plan to establish a digital superhighway in the country will also create more jobs for the youth in the country.
The Hustler Fund is part of President Ruto’s campaign promise to uplift SMEs by facilitating access to affordable credit. With this initiative, more small business owners will have the opportunity to access funding that can help grow their businesses. This, in turn, will lead to the creation of more job opportunities, contributing to the country’s economic growth.
The fact that the credit facility is collateral-free and based on credit history is an added advantage, as it means more people will be able to access funding, regardless of their financial status. The President’s plan to establish digital hubs in every ward in the 47 counties will also help create more job opportunities for the youth in the country.