Hustler Fund loans reach 16 billion shillings in two months

SMEs Chief Cabinet Secretary Simon Chelugui. File Photo | NMG

Borrowers paying their Hustler Fund mobile loans on time will have access to higher limits in Phase 2, which will roll out next month.

Cooperatives and micro and small businesses Chief Cabinet Secretary Simon Chergi said plans to announce loans through groups and savings and credit cooperatives (sacco) are progressing well.

Speaking at the Yetu Sacco’s annual meeting in Meru on Wednesday, Chergi said more than 15.9 billion shillings in loans had been disbursed, with more than 18.4 million Kenyans joining the Hustler Fund, with 7.7 billion since its inception. He added that he paid back more than a shilling. .

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He said 5.6 million subscribers have borrowed multiple times, indicating a growing demand for credit facilities.

“We are finalizing the development of the second phase of the Hustler Fund, which will allow borrowers access between Sh100,000 and Sh2.5 million.

“We are encouraging Sacco to apply for the disbursement of funds in Phase 2,” Chelugui said.

His agriculture sector counterpart Mithika Linturi and cooperative PS Patrick Kilemi accompanied him.

Mr Chelugui said the administration of President William Ruto is keen to expand the cooperative sector by supporting the establishment of cooperatives at the district level.

He said plans to include Sacco in the national payment system and establish a central liquidity system are in advanced stages as part of efforts to boost Sacco.

“So far, about 52 of the 360 ​​saccos under Sasra have expressed an interest in having a central liquidity system. We are also working on a credit guarantee system to protect our members in the unlikely event of an emergency,” Chergi said.

“I urge sacco to diversify its products and support government housing projects to fill a gap in the housing sector. can be accessed.”

He did not encourage the saccos to convert to banking, saying that the conversion would not benefit shareholders.

read: Why The Hustler Fund Is A Game Changer

With more than 60,000 members, Yetu Sacco has declared an 18% dividend and 13% rebate for 2022.

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