President Ruto launches Bridge Loan to boost Hustler Fund borrowers

The new Bridge Loan product rewards borrowers who demonstrate good borrowing behaviour with enhanced loan limits and longer repayment terms.
President William Ruto has announced key reforms to the Hustler Fund, including the introduction of the Bridge Loan product and a behavioural credit rating system, aimed at empowering low-income Kenyans and enhancing financial inclusion.
Speaking during the Hustler Fund's second anniversary at KICC, Nairobi Ruto pointed out that the reforms are designed to help Kenyans at the bottom of the economic pyramid access affordable credit, grow their businesses, and transition into formal financial systems.
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"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.
The new Bridge Loan product rewards borrowers who demonstrate good borrowing behaviour with enhanced loan limits and longer repayment terms.
The loan term has been extended to 30 days, up from 14, with interest rates starting at 8 per cent per annum. Timely repayment will lead to further credit limit increases, making larger loans accessible.
"The Bridge Loan is a stepping stone to greater financial opportunities within the Hustler Fund platform and the formal financial sector," Ruto noted.
Credit scores
A pivotal element of the reforms is the introduction of a behavioural credit rating system. Borrowers will now be scored on a scale from A1 (Excellent) to C3 (Poor), based on their repayment behaviour, replacing the need for traditional collateral.
This system encourages responsible borrowing and helps establish borrowers' creditworthiness.
To date, more than two million Hustler Fund beneficiaries have demonstrated good borrowing behaviour, qualifying them for higher loan limits under the new framework.
The President also introduced a two-month moratorium for borrowers to repay overdue loans and improve their credit ratings, ensuring a fresh start for many.
Beyond credit access, Ruto announced plans to launch a long-term savings management system under KNEST in two months, providing greater financial security for Kenyans.
"The Hustler Fund is here to bridge the gap and prepare Kenyans for formal financial systems," he said.
Since its launch in 2022, the Hustler Fund has provided critical financial support to millions, driving grassroots economic growth and fostering enterprise development.
With these reforms, the government seeks to deepen its impact while promoting a culture of responsible borrowing and financial independence.
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