Wednesday, December 21, 2022 – The Government of President William Ruto has warned Kenyans against defaulting in the repayment of the Hustler Fund loans.
This is after it emerged that 75% of Kenyans who borrowed loans from the Hustler Fund are yet to repay despite the lapse of the repayment period.
Addressing the press at NSSF Buildings, Cooperatives and MSMEs Cabinet Secretary Simon Chelugui said the government had disbursed Sh9.58 billion in 19 days with just Sh2.64 billion repaid to date.
According to Chelugui, the largest loan issued to a borrower so far is Sh5,000 but borrowers can gradually increase their limit to Sh50,000.
He said 59.3 percent of the loans had been repaid by December 14, when the loans issued on the first day of the launch were due.
At the same time, Chelugui revealed that savings in the Hustler Fund will earn interest at prevailing market rates.
70 percent of the savings in the fund will be paid to the borrowers once they hit retirement age. The government deducts 5 percent of each loan which goes towards the savings of the borrower.
Some 70 percent of the deductions go towards long-term savings in their pension account while 30 percent are short-term savings. The money is saved at KCB and Family Bank, but the CS said the government is onboarding the National Social Security Fund to be the long-term custodian of the savings.
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