President William Ruto has introduced significant reforms to the Hustler Fund, including the new Bridge Loan product and a behavioral credit rating system.
The initiatives aim to further empower the underserved population and drive financial inclusion.
The loan, the president said, will help give Kenyans at the bottom of the economic pyramid access to affordable credit and financial growth.
Since its launch in 2022, the Hustler Fund has provided critical financial support to millions of low-income Kenyans, with Ruto emphasising that the Fund is not just a short-term solution.
“The Hustler Fund is not an end—it is a means to an end. It’s a pathway to better jobs, better businesses, and better futures,” he said.
“By unlocking access to credit, we stimulate economic participation, leading to enterprise growth at the grassroots level.”
Ruto said the Bridge Loan product is designed for beneficiaries who have demonstrated good borrowing behavior.
It will provide enhanced loan limits and an extended loan term of 30 days, up from 14 days, with an interest rate starting at 8 percent per annum and a one-month roll with enhanced interest at 9.5 per cent.
Ruto said beneficiaries who repay their loans on time will be eligible for further increases in their credit limits.
This, he added, will make it easier to access larger loans and transition to formal financial systems.
"The Bridge Loan is a stepping stone to greater financial opportunities within the Hustler Fund platform and the formal financial sector," he said.
The product will also help borrowers establish relationships with financial institutions, making it easier for them to grow their businesses and gain access to mainstream financing.
The behavioral credit rating system will replace traditional collateral with credit scores based on borrowing behavior.
Ruto said beneficiaries will be assigned scores ranging from A1 (Excellent) to C3 (Poor), encouraging responsible borrowing and improving access to credit.
The Score has nine bands: A1, A2, A3, B1, B2, B3, C1, C2, C3 to demonstrate one’s credit worthiness.
Ruto noted that more than two million Hustler Fund beneficiaries have already demonstrated good borrowing behavior, with many qualifying for enhanced loan limits.
In addition to credit access, Ruto announced plans for long-term savings management through KNEST, set to launch in two months, ensuring greater financial security for the population.
The President also introduced a two-month moratorium for beneficiaries to repay loans and improve their credit ratings before sharing this data with financial institutions for referencing.
"The Hustler Fund is here to bridge the gap and prepare Kenyans for formal financial systems," Ruto said.
