Kenya Kwanza administration’s signature pledge, the Hustler Fund, is being launched on Wednesday after receiving a nod from Cabinet.
With loans from a minimum of Ksh.500 to as high as Ksh.50,000 at 8 per cent pro-rated basis or a daily rate of 0.002 per cent, the fund is expected to offer much-needed relief to millions of Kenyans who could not access credit after having been blacklisted by various credit rating agencies.
So how can you access the Hustler Fund from your phone?
The fund is accessible through the USSD code *254# and mobile application platforms of any of the mobile network operators in Kenya.
However, at the time of publishing, the service was not yet operational ahead of its launch by President William Ruto.
To register an account on the platform, a customer is required to sign up for the fund through the USSD code or the mobile app.
They will then be required to accept the Terms and Conditions to join the fund, then enter their mobile money pin.
Upon fulfillment of these steps, an SMS will be sent to notify them of their successful registration and the limit assignment.
In the event of a failed registration, the borrower will be notified via SMS.
To apply for a loan, a registered customer is required to:
- Dial USSD code *USSD code# or mobile application.
- Select the loan request option to view the limit, interest, and loan tenure.
- Enter the loan amount and press OK to continue
- Confirm loan details as displayed to continue
- Enter Mobile Money pin
- Receive SMS notifications on Loan allocation with relevant loan information.
When the customer borrows, the approved loan will be disbursed to their mobile money account where out of the total approved loan amount, 95% shall be deposited to the mobile money wallet.
The remaining 5% shall be deposited to their savings account scheme of the Hustler Fund
The savings scheme will split savings into 70% long-term and 30% short term savings, such that 70% of the 5% will go into long term (Pension) and 30% of the 5% will go into short term.
For instance if a customer borrows KSh.1,000,
KSh.50 (5% of Ksh.1,000) will go into their savings account as below.
KSh.35 (70% of Ksh.50) – Will go to Pension account.
KSh.15 (30% of Ksh.50) – Will go to short term savings account.
According to Co-operative and Micro, Small, and Medium Enterprises Cabinet Secretary Simon Chelugui, the fund does not have a processing fee.