Sharp Daily
No Result
View All Result
Sunday, August 31, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Business

Govt expands Hustler Fund to bolster small business financing

Kevin Cheruiyot by Kevin Cheruiyot
September 26, 2024
in Business
Reading Time: 2 mins read

The government plans to expand the Hustler Fund and introduce a new product aimed at borrowers who consistently repay their loans on time.

Wycliffe Oparanya, Cabinet Secretary for the Ministry of Co-operatives and MSME Development, announced that a new product called the Savings-Loan Portfolio which will be rolled out for two million Kenyans who have demonstrated consistent borrowing and repayment from the Hustler Fund. This initiative will help these borrowers’ transition to commercial banks, where they can access larger loans.

“Two million Kenyans are regularly borrowing from the fund daily, benefiting from its purpose of providing financing to those at the grassroots level who previously had no access to credit. These individuals are now able to borrow and grow their small businesses,” Oparanya said.

He further explained that as these businesses expand, borrowers can secure larger loans from various government institutions such as Kenya Industrial Estates, offering loans of up to Kshs 20.0 million at a 10.0% interest rate, along with Kenya Development Corporation (KDC) and the Agricultural Finance Corporation (AFC).

RELATEDPOSTS

Parliament

Lawmakers call for comprehensive list of Hustler Fund defaulters

October 2, 2024

Loyal Hustler Fund borrowers to benefit from new SME product as loans hit KES 57 billion

September 17, 2024

Speaking at the rebranding event of Safaricom Investment Co-operative to SIC-Investment Co-operative, Oparanya highlighted that the Hustler Fund has so far disbursed Kshs 57.0 billion to 22 million Kenyans, of which Kshs 44.0 billion has been repaid, with approximately Kshs 13.0 billion still outstanding translating to 77.2% repayment rate.

In collaboration with service providers, Oparanya noted that the government is developing new strategies to ensure borrowers repay their loans so that more Kenyans can benefit from the fund. He mentioned that the minimum repayment amount was reduced from Kshs 500.0 to Kshs 100.0 after noticing repayment difficulties.

“This year, the government has allocated KSh 3 billion for the Hustler Fund,” Oparanya added.

The Cabinet Secretary emphasized the vital role that cooperative societies play in areas such as produce aggregation, processing, transportation, marketing, savings mobilization, and financial inclusion, with a notable impact across all sectors of the economy.

“As reported by the International Cooperative Alliance (ICA) and the Cooperative Alliance of Kenya (CAK), there are around three million cooperatives globally. Kenya alone has over 25,000 registered cooperatives with a membership of over 14 million people. These cooperatives contribute around 30.0% of Kenya’s annual savings and generate direct employment for over 500,000 people, with an additional two million indirectly employed,” Oparanya elaborated.

He further stated that the Kenyan government recognizes the cooperative sector as a key player in driving the country’s socio-economic growth, equity, and sustainable development. Cooperative societies are central to advancing the financial inclusion goals outlined in the Bottom-Up Economic Transformation Agenda (BETA).

The government’s efforts to expand the Hustler Fund and introduce innovative financial products highlight a strong commitment to empowering grassroots entrepreneurs and promoting financial inclusion. By rewarding consistent borrowers with access to larger loans and facilitating their progression to commercial banking, the government is fostering economic growth and business development at the micro and SME levels. The collaboration with cooperative societies and investment co-operatives like SIC further solidifies the role of cooperative institutions in driving Kenya’s socio-economic progress, particularly through savings mobilization, affordable housing initiatives, and financial inclusion. These initiatives align with the broader Bottom-Up Economic Transformation Agenda, positioning Kenya on a path toward equitable and sustainable development.

Previous Post

Lawmakers push for permanence of National Development Fund

Next Post

The importance of diversification in Kenyan pension funds

Kevin Cheruiyot

Kevin Cheruiyot

Related Posts

Analysis

Why private credit gaining traction in emerging markets

August 21, 2025
Analysis

EABL posts 12.2% profit surge, strengthens regional footprint despite rising illicit trade

August 1, 2025
Business

Shri Krishana Overseas lists on NSE

July 25, 2025
Business

Del Monte foods files for bankruptcy in USA

July 3, 2025
Analysis

Lessons from the Kuramo-TransCentury fallout

July 3, 2025
Business

Competitive advantages of small businesses

June 26, 2025

LATEST STORIES

The Importance of Including Pension Plans in Corporate Benefits Packages

August 29, 2025

The informal labor market and classical unemployment in the Kenyan context

August 28, 2025

Kenya’s Eurobond yields ease after S&P rating upgrade

August 28, 2025

Kenya’s strategic debt pivot: Smoothing, Strengthening, Sustaining

August 27, 2025

Bank on your paycheck: Invest smart with CMMF

August 26, 2025

Finding Balance: My Journey with Internet Self-Care

August 22, 2025

Why Young Kenyans Cannot Afford to Ignore Private Pensions

August 22, 2025

Strategies for Nairobi to emerge as Africa’s financial hub

August 22, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024