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Cooperative Cabinet Secretary Simon Chelugui announced that Kenyans would be able to access increased loan limits from Wednesday, February 15.
Speaking during an interview on NTV on Tuesday, February 14, the CS revealed that Treasury had disbursed an additional Ksh1.9 billion for the funds to enable the government to increase the loan limit for millions of Kenyans.
However, he insisted that the increased loan limit would be made available to those who had borrowed consistently from the funds.
On the other hand, one also needed to have been repaying their credit to be considered for the new move.
Cooperative Cabinet Secretary Simon Chelugui speaking in his office in Nairobi County on February 14, 2022.
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Simon Chelugui
“Immediately after President William Ruto made the announcement to increase the loan limit, we embarked on a serious engagement with the service providers, and Kenyans should be able to access the loan limit from tomorrow – February 25.
“The names of everybody who had done well with the loans have been mapped out and the increased limit will only go for those who have borrowed and repaid,” he stated.
According to the CS, nearly 14 million Kenyans had borrowed and repaid their loans as required.
“The fund is two months old having been launched in December 2022. We have 18 million Kenyans who have joined the Hustler Fund. Out of 15 million who have borrowed, 14.2 million are doing very well. Only 800,000 are struggling,” he stated.
Kenyans with good credit records are set to enjoy double the loan limits set for them when they started using Ruto’s campaign pledge fund.
Chelugui also announced plans to introduce more loan packages to uplift businesses across the country.
“The hustler fund has four products, and we have only done one product. The second micro-loans will be launched by the end of February.
Loans for startups and Small and Medium Enterprises (SMEs) are also set to be launched later in the year as the government aims to set a package of Ksh19 billion for the funds.
Earlier, Ruto revealed plans to introduce credit scores to the funds to help Kenyans use the funds to access more money and improve the culture of repaying the loans.
“The financial grade will determine if you are good or if you need to increase the credit. You will be explained to why you qualify for the grade issued to you,” the President announced.
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