One of President Ruto’s signature campaign pledges was to turn Kenya into a bottom-up economy, where the so-called ‘lowly or underserved Kenyans’ have the same opportunity as the rest.
One way to do that was to establish a Hustlers Fund in Kenya that the president himself launched on 30th November 2022.
Qualified Kenyans can apply for the Hustlers’ Fund using the code *254#, the Hustler Fund mobile app, or their mobile money H-Fund mini app and get access to various loan products.
Currently, the 50 billion fund offers four types of loans: personal finance, startup, micro business, and SME loans. It’s, however, popularly known for supporting local small-scale traders.
And unlike most loans, even Kenyans who are blacklisted by the credit Marshall CRB (Credit Reference Bureau) can apply for a Hustler loan.
According to the president, this will not only give a chance to those locked by the CRB to rebuild their credit reputation but will also liberate them from the scrupulous shylocks. Even better, it’ll instill a culture of saving and investing among Kenyan youths and promote social security.
Individual applicants qualify for Ksh 500 – Ksh 50,000, while startups and SMEs can apply for up to Ksh 50,000 as groups enjoy a Ksh 10 million limit.
This post shall cover everything about the Hustler Fund, including the application process, requirements, terms and conditions, interest rates, and repayment. I’ll also give you my honest opinion about this fund and whether you should apply for it.
Let’s get into it!
In a hurry? Check out the fact sheet below that gives an overview of the Hustlers Fund.
Hustlers Fund in Kenya Fact Sheet
|30th November 2022
|Ksh 50 billion
|Personal finance, startup, micro business, and SME loans
|Ksh 500 – Ksh 50,000 (for individuals), up to Ksh 50,000 (for startups and SMEs), and up to Ksh 10 million (for registered groups)
|*254#, the Hustler Fund app, or H-Fund Mini App
|18 % per annum or 0.002 % per day
Learning How to Apply for Hustlers Fund in Kenya
It’s vital to meet the basic registration requirements before applying for the Hustlers’ Fund. Once you do, you can follow these steps to help you sign up. Let’s start with the application requirements.
Hustlers Fund Requirements in Kenya
Generally, here are the basics requirements for the Hustlers Fund applicants:
- Be a Kenyan citizen of at least 18 years with a valid Kenyan national ID (Identification Card)
- Have a registered phone number by a recognized network operator (Safaricom, Telkom, or Airtel)
- Have a registered mobile money account (MPESA, T-Kash, or Airtel money)
- The SIM card should have been in use for at least 90 days
- Be living in Kenya
- Provide residence (where applicable) during the fund’s onboarding process
- Be an active part of a local registered group (Chama) or Sacco (applicable to groups)
Hustlers Fund Registration in Kenya
Now that the fund’s application requirements are precise, here’s how to sign up for the Hustlers Fund in Kenya:
1. Registration Through USSD *254#
Using the country’s code 254, you can register for the Hustlers Fund as follows:
- Dial *254# on your mobile
- Accept the fund’s terms and wait for a confirmation message confirming your registration
- You can after that apply for the loan
2. Registration Through the Hustler Fund App
You can also register for the Hustler Fund and apply for a loan using the Hustler Fund mobile app. You’ll need to download the app from Google Play/Play Store, fill out an application form, and apply for the loan you qualify for.
3. Registration through the H-Fund Mini App
You don’t have to download the Hustler Fund and install it on your phone to access the loan facility. No! You can update your existing MPESA, T-Kash, or Airtel app to access the H-Fund mini app.
And once you do, you can apply for the loan using these steps:
- Log into your mobile money app (MPESA, T-Kash, or Airtel)
- Identify the H-Fund mini-app within the app. If it’s not there, update the app on Google Play or the App Store
- Open the mini app and choose (request loan to start the loan application)
Hustlers Fund Loan Application
Once registered for the Hustlers Fund, you can apply for a loan using these steps:
- Dial *254# on your mobile phone
- Choose option 1 (request loan) and wait for a display on your phone screen indicating how much you qualify for, the repayment period, and the interest rate
- Enter the amount you want to borrow within the bracket that you qualify
- Wait for a confirmation display on your screen indicating how much you intend to borrow (minus saving) and the amount you’ll repay and accept
- Choose mobile money and enter your secret pin
- Wait for a confirmation message for the loan processing
Hustler Fund Terms and Conditions
Below are the basic terms and conditions for the Hustler Fund.
- Savings – The Hustlers Fund loan you receive is 5% less, and the 5% deduction is allocated for savings. 30% of your savings deduction goes to your short-term savings, while 70 % applies to your pension remittance.
- Loan term – Hustler Fund loans have a 14-day repayment period where the interest accrues daily until you fully repay the loan.
- Interest rate – The annual interest for a 14-day loan is 8% or about 0.002% daily. In case you fail to settle your debt in time, the interest rises to 9.5 % from the 15th to the 30th day.
- Loan default – Once you fail to pay the loan within 14 days, you’ve another 16 days (up to the 30th day) to pay back but now at a 9.5 % interest. But once the 30 days are over and you haven’t paid, you won’t be eligible for any other Hustler Fund loan until you pay back. What’s more, the lender retains your 30% short-term savings.
- Terms acceptance – As long as you choose the Accept’ option, the lender deems you to have read the terms even if you haven’t. So, it’s essential to read the terms before accepting anything and if you aren’t okay with the conditions, decline them.
Is The Hustler Fund Loan Worth It? If Not, What Are Your Options?
In my view, the Hustler Fund is a loan like any other, and all loans need to be paid, and you’ve to pay with interest making the lender more richer.
As the scriptures say in Proverbs 22:7, ‘the borrower is slave to the lender.’, there is no freedom in debt and all it does it to add stress and rob your future income from you.
I believe that the greatest wealth building tool is your income and you should protect it by all means. Most likely, what you’ll do with the hustler fund will be unproductive and this will only derail your financial success.
Let’s review the interest rate, repayment period, and default briefly.
Regarding the Hustler Fund interest rate, there’s no doubt that 8% per annum is pretty fair if you consider that so many online money lenders charge more than 16% and some up to 100 % or more per annum.
But let’s face it, you’ve to pay the interest back together with the loan amount, and that’s the bottom line. Then comes the other big issue, which most Kenyans complain about, and that’s to pay the loan in 14 days. That’s no different from existing loan apps or the traditional unscrupulous shylocks.
And what if you fail to settle the loan within 14 days? Then you’ve another 14 – 16 days to pay back but at a higher interest (9.5 %).
And what happens after that?
You cannot access another loan, and your credit record is probably soiled again. That’s another name for being blacklisted!
Yes, I know the Hustler Fund has a savings plan where 5 % of your loan is remitted to savings. But wait for a second;
Are you not supposed to pay an interest of 8 %? What if you had allocated the 8 % to savings without the Hustler Fund?
Well, there must be a better way to stay out of debt, save up, and prepare for emergencies, and that’s where we come in as the Cent Warrior family.
Our goal is to help as many Kenyans as possible stressed with debt to pay off their debt, stay away from it, and start enjoying financial freedom.
What We Do as Cent Warrior
We have derived a ‘9 Factor Plan for Financial Freedom’ whose goal is to equip you with the right mindset and skill to attain financial freedom. Through our 3 MP (which stands for Make – Manage – Multiply – Protect ) Money Formula, we share principles you can use to make money, grow it and keep it.
We’ll guide you on setting up an emergency fund for the rainy day to avoid borrowing when an unforeseen event strikes. We’ll also help you identify suitable investments, such as the best money market funds in Kenya, and help you strike a saving formula regardless of how much you make.
And more importantly, we’ll help you develop a way to pay your debt comfortably and, as I mentioned earlier, stay away from it. That’s the key to financial freedom, and we cannot wait for you to experience it!
People Also Ask
1. What Is the Hustler Fund?
The Hustler Fund is a Kenyan government-engineered digital lending platform that offers easy access to loan products to individuals, startups, groups, and micro enterprises.
2. How Does the Hustler Fund Work?
The Hustler Fund provides a digital lending platform where Kenyans borrow anything from Ksh 500 to Ksh 50,000 or up to Ksh 1 million (for groups), can borrow money without collateral, and use it for business.
3. What Products Does the Hustler Fund Offer?
The Hustler Fund offers the following four groups of loans:
- Personal finance loans
- Startup loans
- SME loans
4. How Do I Register for The Hustler Fund?
You can register for the Hustler Fund using the USSD code *254# or the Hustler Fund mobile app. You must meet the fund’s basic requirements and accept the terms.
5. Can Any Individual Apply for Hustler Fund?
Anyone with a Kenyan ID, a registered mobile number, an active mobile money account, and a country resident can apply for the Hustler Fund, regardless of whether they are on CRB.
6. What Is the Hustler’s Fund Repayment Period?
Individual borrowers have a 14-day timeline to repay their Hustler Fund loan at an interest of 8 %. Once you fail to pay after that, you’ve until the 30th day, when the interest rises to 9.5 %.
7. How Do I Check the Hustler Loan Status?
You can check the status of your Hustler Fund loan by:
- Dialing *254# on your mobile
- Selecting loans
- Choose loan status and enter your pin
- You’ll then receive an SMS with your loan status
8. How Do I Check the Hustler Loan Balance?
You can check your Hustler loan balance by:
- Dialing *254# on your phone
- Selecting loan
- Opting for the loan balance
- Enter your pin, and you’ll receive an SMS with your balance
9. What Are the Penalties If I Don’t Repay My Hustler Fund Loan?
Once you fail to repay a Hustler Fund loan within 14 days, the interest rises from 8 % to 9.5%, and you’ve until the 30th day to pay the loan. If you don’t after 30 days, you cannot access another loan, and the lender holds 30% of your 5% savings.
10. How Can I Save Into the Hustler Fund?
5% of what you borrow from the Hustler Fund automatically goes into savings, split into 70% pension and 30 % short-term savings. However, you can still save by depositing directly into your H-Fund savings account.
Now you know the basics of the Hustlers Fund in Kenya. The guide highlights the basic registration requirements, terms and conditions, sign-up routes, and processes.
But as shared, the Hustler Fund is a lending platform like any other and what you are getting is a loan like any other which you’ve to pay back with interest.
So, if you wouldn’t want to get into the debt trap or be a slave to the lender, as I mentioned, then you’ve to look for ways to avoid borrowing, and we, as the Cent Warrior family, can help you.
We are establishing a debt-free and financially-fit movement by sharing practical steps and working principles which you can use, and we hope you can be part of that.