Hustler Fund Savings: Hustler fund borrowers can only access their savings after one year, Cooperatives and MSME Cabinet Secretary Simon Chelugui has said.
Chelugui, however, explained that only 30 percent of the total money saved will be accessible.
The remainder which is 70 percent, he noted, is saved for the long term up to the retirement age which is 60 years.
“Five percent of the amount one has borrowed is deducted and deposited into a savings account and then it is split into long-term and short-term,” said the CS.
He added, “Apart from ensuring that ordinary Kenyans are cushioned from predatory digital lenders, this fund is geared towards inculcating a saving culture, especially among the 16 million Kenyans who are not in formal employment.”
Speaking to the Star, CS Chelugui at the same time stated that savings are in a fixed account and that the contributor enjoys interests.
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“Interest benefits goes to to the contributor just like any savings or pension investment,” he said.
NSSF, he added, has been incorporated to help in the management of the savings account.
A total of Sh740 million from 25 million transactions have so far been saved.
Borrowers have also repaid a staggering Sh6.8 billion, translating to about 50 percent.
So far, 18 million Kenyans have been registered and are accessing the fund which is the biggest campaign promise by the Kenya Kwanza administration.
Some 5.3 million Kenyans have so far borrowed more than once.