With a 14-day repayment period and an annual interest rate of eight per cent calculated per day, a customer who borrows Sh500 will pay back Sh501.53 after 14 days, representing Sh1.53 in interest.
When a customer borrows, the approved loan is sent to their mobile money account, deposits 95 per cent of it in their money wallet, and places five per cent of it in their savings account.
The five per cent that goes toward the savings plan is split into 30 per cent for short-term savings and 70 per cent for long-term (pension) savings.
“We have about eight million Kenyans who have been blacklisted by lenders. The Hustlers fund will give them a second chance… Even those who had been sent away by lending apps, this is your chance to redeem yourself,” said President William Ruto during the launch of the Fund in Nairobi yesterday.
The fund will be the centrepiece of President Ruto’s job creation agenda, especially with the outgoing government extended the hiring freeze in parastatals, dashing the hopes of thousands of jobless Kenyans in an economy where companies are shedding jobs.