President William Ruto launched the Sh. 50 billion hustler fund project on November 30th, 2022.
The flagship project was his primary commitment to the Kenyans termed as ‘hustlers’ during his campaign trail before the elections. Do you know where the hustler fund comes from?
As of February 16th, 2023, Cooperatives and MSMEs Cabinet Secretary Simon Chelugui disclosed that the kitty fund had 31.4 billion left. This means the funds disbursed were more than 18.6 billion in 4 months.
The government estimates that over 30 million transactions were made during the period. CS Chelugui further divulged the repayment numbers, stating that over 50% of Kenyans taking the hustler fund loan repaid.
“We have witnessed tremendous growth in the first two and a half months of the Hustler Fund,” said Chelugui.
Recently, the few Kenyans who had kept their word on the repayment plan were treated to benefits such as a 100% increased limit on the fund.
READ: Ruto: 800,000 Kenyans have defaulted on loans
“We are getting positive feedback from our beneficiaries and that’s one of the reasons why we have increased the limits,” he said.
During the launch of the hustler fund loan on November 20th, Kenyans were given a limit of between Sh. 500 and Sh. 50,000.
“Those who were getting Sh. 3000 would now get Sh. 6000, while those who were getting Sh. 5000 are getting Sh. 10000,” Chelugui noted.
To access the funds, Kenyans have to dial *254# on their mobile phones. Depending on the telco the person is subscribed to, the funds can be injected into MPesa, Airtel money or T-Kash.
In an interview on Citizen Tv, the chairperson at Ruto’s Council of Economic Advisors, David Ndii revealed that the private sector wholly manages the kitty. He added that public officials had been restricted from accessing the funds.
“The private sector runs the Hustler Fund. We have no access to it. No public official has access to the hustler fund. It is fully automated…the money sits with a custodian in the bank,” he said.
The hustler fund is run by an automated machine operated by telcos and banks in the country in a Public-Private Partnership (PPP).
Here is a list of companies that facilitate the Hustler Fund:
1. Safaricom
Kenya’s largest telco Safaricom is among the major companies funding the hustler fund kitty for Kenyans.
The government of Kenya owns 35% of the firm, while South African telco giants Vodacom own an equal 35% stake.
This makes them the majority shareholders who get to make vital decisions on the corporate’s financials and operations.
The remaining percentages are held by Vodafone and Local investors at 5% and 25%, respectively.
2. Telkom
The government of Kenya owns a 100% stake in the telecommunications provider. This means that they regulate nearly all the operations.
3. Kenya Commercial Bank
KCB, a financial services institution, is also on the list of companies running the Hustler Fund.
KCB Group is the majority shareholder of KCB Bank Kenya, listed on the NSE. The government of Kenya has 635,001,947 equities which translates to 19.8% shareholding.