Moses Kuria praises Hustler Fund credit score, says World Bank wants it used for all Kenyans

Investment, Trade and Industry Cabinet Secretary Moses Kuria has heaped praise on the government’s credit scheme popularly known as the ‘Husler Fund’, stating that its performance has been impressive so much so that it has attracted the attention of the World Bank.

Speaking on Citizen TV’s The Big Conversation show, Kuria said he recently held a meeting with World Bank officials who expressed much approval of the Hustler Fund due to its credit rating mechanism which he described as the ‘’fairest and cleanest.’’

Kuria went ahead to state that the World Bank sent him to President William Ruto with a proposal of having the Hustler Fund’s credit score rating mechanism be used as a universal parameter of rating creditworthiness in the country, including in commercial banks.

‘’The other day I had a meeting with the World Bank and World Bank made a surprising request to me and they sent me to the President and CS Chelugui, whether we can share the credit score coming from hustler fund to be the universal score for everybody in the country including commercial banks because it is the fairest and cleanest,’’ said Kuria.

He added: ‘’Everybody including those on CRB were given a fresh chance to start from zero to a point where World Bank wants to say for any lending we want to do in Kenya, we can use this same score.’’

According to the government, Kenyans have borrowed Ksh.36 billion from the Hustler Fund since its launch in November last year.

Cooperatives and MSME Development Cabinet Secretary Simon Chelugui, who was also on the same panel with Moses Kuria, said Ksh.36,589,538,670 had been lent out to 21,000,221 million Kenyans as of Wednesday, September 13, 2023.

Chelugui expressed confidence in the Hustler Fund saying its rollout has been successful, adding that the kitty has been growing organically.

‘’We are short by only 799 we cover every Kenyan to be onboarded. We have been able to map every Kenyan digitally, promote financial literacy, digital knowledge and begin to introduce a new way of lending in Kenya which is the credit score. We have rehabilitated 7.5 million Kenyans. We have saved Ksh.1.8 billion in their savings. Now they will have a retirement like any formally employed Kenyan,’’ said the CS.

On the source of the money being advanced to Kenyans through the Hustler Fund, Chelugui said: ‘’We got a grant or budgetary support of Ksh.12 billion last year and we have added another Ksh.10 billion this year.’’

He added that the fund will continue to grow further due to the borrowing and repayment rate, pointing out that at some point, the Hustler Fund hit an unprecedented borrowing peak of Ksh.325,000 per second.

‘’The rate of borrowing and repayment of this money, at the peak was Ksh.325,000 per second. It has never been registered anywhere. It means this is where the hustlers are. Those who borrow and repay are the ones building the fund. The fund is growing organically,'' he said.

According to CS Chelugui, out of Ksh.36 billion that has been borrowed, Ksh.25.9 has been paid back amounting to 73% out of which Ksh.1.8 billion is held as savings for Kenyans who have borrowed.

‘’At the end of this month, we are releasing the first 30% of their savings in line with the terms and conditions of this loan. And 70% will be long-term and will be released at age 60. Those within the loan period are holding Ksh.4.5 billion. In the end, you will find less than 10% are within the bracket you can call delayed, awaiting or recovery,’’ said the CS.