Recent details from Safaricom M-pesa have emerged indicating that around 42% of Kenyans who applied for the hustler fund are yet to repay their dues after the 14 day repayment period. Ruto's administration may yet be confronted with a crisis in managing the fifty billion hustler fund that the new administration has set aside.
The official launching of the hustler fund was on 30th of November 2022 and since then 9.5 billion shillings have been disbursed. Around 16.6 million borrowers have accessed the funds and only 2.6 billion of the 16.6 billion Kenyan shillings have been repaid.
The first baby steps of the new administration has been faced by major economic challenges. one of these challenges being the inflation rate that has been reported to hit 9.2 % which is the highest mark in 63 months. The impact is the high cost of living which will in turn affect the repayment rate of the hustler fund loan.
''There is no doubt that the Hustlers Fund, if well executed, can provide much-needed affordable credit for small businesses. Currently, such credit is virtually impossible to come across.
The Youth Enterprise Development Fund provides a business loan product that attracts a single-digit interest of 6 per cent.'' Reported by the standard media group.
What is your opinion on the future of the hustler fund?
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But there is a catch – the loan can only be secured through conventional security, which is a challenge for many youth.
Content created and supplied by: John (via Opera News )
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