A month ago, President William Ruto launched a small loan scheme dubbed the “Hustler Fund”, a major plank of an election campaign in which the long-time politician presented himself as a self-made businessman eager to help fellow Kenyans get ahead.
The state-backed business loans capped at Ksh50k, with an 8% annual interest rate, means Kenyans have the best chance to establish the business they have always envisioned.
What Are Some of the Hustler Fund Loan Specifics?
The hustler kit took shape on December 1st,2022, enabling many Kenyans to access various loan amounts. Here’s a mini guideline to help you navigate it.
The funds are available to Kenyans in their individual and group capacities.
You do not need to go to committees or connections to access the hustler loan. All you need are your phone and a registered sim card.
Small enterprises and cooperatives can also access the hustler loan.
Groups are also eligible to borrow the hustler loan capped at Ksh 50,000-250,000.
Individual Kenyans of legal age loan range between Ksh.500 and Ksh.50,000.
If you are lucky enough to access a Ksh50,000 hustler loan, here are some of the business ideas you can use:
1. Movie Shop
There is a high demand for western films and TV shows provided by streaming services in Kenya. Unfortunately, ordinary people have a hard time accessing the movies and TV shows, primarily due to lack of a good internet connection for streaming from various entertainment websites.
Movie shops started out as a small business but currently, they are one of the most lucrative businesses to venture into right now especially for young people. If you are a movie junkie and have been thinking of running a profitable movie shop, here are a couple of Fundamental essentials you might require are:
- Overheads (Rent, electricity, water, transport) depend on your location
- A desktop computer -Ksh10,000-Ksh15,000
- CD Burning software – Ksh5,000
- Single business permit @ Ksh2000(might be less or more depending on county permit regulations)
- KFCB license -Ksh3000
- External hard disk -Ksh500
2.Hardware Store
With increased construction, you can start and run a successful hardware business in Kenya
As for the stock, with a registered business, you can easily get it from suppliers in consignment deals. Therefore, you only need about Ksh 20,000 – 50,000 to set up a profitable hardware store.
A hardware business thrives in places with construction activities. You need to find fast-growing areas to open and operate a hardware. You also need to counter check that the location has customers with high purchasing power to avoid making losses.
3. Grocery Store
Groceries are among the fast-moving products in the market. Their demand is high while they are essential in every household.
Ksh 50,000 is enough to set up a successful grocery store, especially in residential neighbourhoods in urban areas. Most of the capital will go towards acquiring a shop space, with the rest going to licenses and stock. For the stock, you can get your produce from major markets or source them directly from the farmers.
4. Car Wash
A car wash business never goes out of style. As newer cars come on the road, it keeps a substantial number of Kenyans in the industry. So how can Ksh50k support this business type? Besides leasing land and acquisition operating permits, you can purchase the following equipment:
- A high-pressure car washer
- A vacuum cleaner
- An alloy wheel cleaner
5. Mobile Money Agent
Mobile money agencies continue to make money transactions convenient for many people. It’s a viable business once you identify the most suitable location. Kenya’s most popular mobile money agencies are Equity, Airtel Money, and Mpesa.
Therefore, if you are considering setting up a mobile money service business, one thing you will never lack is customers. Just make sure to set up your business in a location that experiences a lot of traffic and one that does not have many competing businesses. Other than that, you will only need to have a business license, a money transfer agent sim card, and a phone (a simple one will do).
Wrapping up
The Ksh50K hustler fund is a substantial sum of money. You can identify a lucrative business idea, do market research and implement it. The trick is also to build an extensive network that might help market your business, enabling it to grow.
I find it impractical since people who are starting do not have good financial records to back their borrowing higher amounts. Hustler Fund limit is based on your financial history.
My Mpesa statement for 1 year reads Ksh. 4million, but when it comes to Hustler Funds limit, I can only attain Ksh. 900. The question we need to ask is, who qualifies for the 50k loan? Do they really need 50k to start a movie shop, or they are better placed to access better amounts of money to start better businesses?
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