IN a significant move to support small businesses, the Kenyan government is allocating an additional KSh10bn ($93 million) to the Hustler Fund. Launched by President William Ruto last year, the digital financial initiative aims to provide loans to small businesses that have long struggled to secure financing from local banks.
During the presentation of the first budget in the Kenya Kwanza government, Treasury Cabinet Secretary Prof Njuguna Ndung’u shared that the Hustler Fund has already disbursed KSh30.8bn ($286 million). This substantial investment has made a positive impact on the business ecosystem and encouraged further support for the initiative.
Prof Ndung’u also revealed that KSh1.5bn ($14 million) has been saved on a mandatory basis, with an additional KSh17 million ($158,000) saved voluntarily. These savings demonstrate the responsible financial practices encouraged by the Hustler Fund and the commitment of the beneficiaries to the pro
gramme.
The Hustler Fund was specifically designed to enhance financial access for personal, micro, small, and medium-sized enterprises (MSMEs) by providing responsible finance. It was established under the draft Public Finance Management (Financial Inclusion Fund) Regul
ations, 2022 and was a key promise made by President Ruto during his election campaign.
The Fund comprises four distinct products: Personal Finance (ranging from KSh500 to KSh50,000 depending on credit scoring), Micro Loans, SME Loans, and Startup funding. Furthermore, during the 60th Madaraka Day celebrations on June 1, President Ruto introduced the second product of the Hustler Fund, aimed at facilitating group access to funding for Kenyans.
‘To promote inclusion, the Hustler Fund will deploy groups such as chamas and Saccos to overcome exclusion and barriers in accessing credit, savings, social security, health insurance, and other socio-economic amenities,’ stated President Ruto during the launch. He stressed the government’
s commitment to utilising policy and technological innovation to mainstream financial and entrepreneurial inclusivity, ensuring that no one is left behind.
With the allocation of additional funds, the government aims to further empower small businesses and foster economic growth in Kenya. The Hustler Fund continues to play a pivotal role in providing responsible finance, enabling entrepreneurs to pursue their business aspirations, and contributing to the nation’s development.
