Hustler Fund: How to Apply for the Loan in Kenya 

Kenya’s president, William Ruto, has today 30th November 2022 launched the Hustler Fund aka Financial Inclusion Fund. The fund is aimed at providing financial assistance for the growth of small businesses and entrepreneurs.

The Kenya Kwanza government is following through on its campaign promise of assisting low-income Kenyans who are unable to obtain loans at high interest rates from lending institutions. And from 1st December 2022 you’ll be able to access the loan by simply dialing *254# in your mobile phone. 

The Fund’s Structure 

The cabinet approved an initial capital of Ksh 50 billion. This is available at a one-digit interest rate of 8% per annum. As such, the fund is structured into four categories:

• Personal Finance
• Micro loans
• SME loans
• Start up

The president launched the personal finance product, with the rest slated for later dates in phases. Whereas the minimum amount has been set at Ksh 500, the maximum is determined by the borrower’s credit score and capped at Ksh 50,000.

On the other hand, the government will deduct 5% from the amount you borrow to help you develop a savings plan. For example, if you borrow Ksh 10,000, then Ksh 500 will go to your savings. The government will also add Ksh 1 to your savings for every Ksh 2 you borrow.

Who is Eligible for the Financial Inclusion Fund?

People in the following categories are eligible for the Hustlers Fund:

• Kenyan citizens aged 18 and above
• In possession of a national identification card
• Have registered a mobile number
• Members of Saccos, table banking, MSMEs, cooperative societies, chamas, groups, and duly registered associations.
• Individuals in business with a revenue of less than $100 million.
• Financial intermediaries willing to lend to their customers. Twiga Foods will receives Ksh 300 million, which will lend to its 140,000 suppliers and customers.

Expert Tip: When applying for a personal loan, you must also have a business idea that you are passionate about and believe has potential for growth.This will help you get funds to repay the Hustlers Fund.

How do you apply for the Hustler Fund?

Mobile network operators, including Safaricom, Airtel, and Telkom, will disburse the loans through your registered mobile number.

To apply for the Hustler Fund

• Dial *254#
• Accept the terms and conditions 
• Enter your mobile money pin
• You’ll receive an SMS notifying you of a complete registration and the limit you’ve been assigned. 
• If your registration fails you’ll receive a text message notifying you of the same.

In that regard, you will not need any collateral, guarantors, or other paperwork to access the loan.

In case you default on the loan payment, you will receive a fine not exceeding Ksh 10 million, serve a jail term not exceeding 5 years, or both.

Once you have submitted your application, a team of experts will review it and get in touch with you to discuss the progress.

Apply for the fund 

The Hustler Fund is a great opportunity to get financial assistance and grow your business in Kenya. It is a competitive process, but if you have a strong business plan and a good track record, you have a good chance of success. The best way to increase your chances of success in every circle is to pay the loan on time.