Over 1.2 million Kenyans who have borrowed more than 5 times from the Hustler Fund will have their savings limits increased in order to get 50% of their savings matched by the government on Thursday, November 30th. The maximum matched savings limit will be set at KES 6,000.
Those who have borrowed over 10 times from the fund will receive a 100% increase to their savings limit. Citizens who borrowed between 5-10 times will get their limit raised by 60%, while those who borrowed 2-5 times will see a 40% boost.
President William Ruto announced the changes during a speech commemorating the 1-year anniversary of the Hustler Fund’s establishment. He stated that the increases are intended to reward frequent borrowers who exhibit financial discipline by consistently repaying their loans.
Savers will be able to withdraw 30% of their total savings, while the remaining 70% must stay in the fund as long-term savings. Those who do not make a withdrawal within 30 days will have the 30% added back into their savings limit.
All savers will also receive 12% interest on their account balance as of December 31, 2023. This interest rate will be benchmarked to the Treasury bill rate minus a 3% management fee.
In addition to the individual saver benefits, the President announced that qualifying Hustler Fund groups will receive grants ranging from KES 200,000 up to KES 1 million over the next year. These funds are intended to support the groups in expanding their small businesses and community development initiatives.
