(3 minutes read)
- President William Ruto rolled out the Hustler Fund for groups, which will enable organizations and businesses to borrow money collectively. This he revealed while addressing Kenya’s 60 years independence anniversary in Embu. Ruto said the new solution targets chamas and saccos
President William Ruto rolled out the Hustler Fund for groups, which will enable organizations and businesses to borrow money collectively. This he revealed while addressing Kenya’s 60 years independence anniversary in Embu. Ruto said the new solution targets chamas and saccos.
A chama is an informal cooperative society and is also referred as “micro-savings groups”, whereas Savings and Credit Co-operatives (SACCOs) are community membership-based financial institutions that are formed and owned by their members in promotion of their economic interests.
These groups, President Ruto said, face barriers when it comes to access to credit, savings, social security, health insurance and other socioeconomic amenities. Hustler Fund was launched last year by the new administration to advance affordable credit to masses that were locked from mainstream financial institutions. Since it was unveiled, Kenyans have borrowed Sh24 billion from the kitty.
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The scheme has supported 19 million beneficiaries nationwide. The Ministry of Cooperatives and Micro, Small, and Medium Enterprises indicates that Sh4.2 billion has been repaid. Customers who have borrowed more than once in the kitty now stand at 6.6 million. The total amount saved on the kitty in the last four months is Sh1.2 billion.
