President Ruto Launches Hustler Fund Credit Rating System and Bridge Loan Product

President William Ruto has unveiled the Hustler Fund Behavioral Credit Rating System, an innovative tool designed to improve credit accessibility for borrowers who demonstrate good repayment behavior. The system, launched alongside the new Bridge Loan product, rewards responsible borrowers with increased loan limits and longer repayment terms.

Hustler Fund Behavioral Credit Rating System

The credit rating system assigns all Hustler Fund beneficiaries a score, ranging from A1 (very good) to C3 (very poor), based on their borrowing and repayment habits. The nine credit score bands include:

• A1, A2, A3
• B1, B2, B3
• C1, C2, C3

President Ruto emphasized that the credit score serves as a borrower’s “new collateral.” Responsible borrowers with high scores can see their limits double or even triple. For example, those with a KSh50,000 limit could now access up to KSh150,000.

“You don’t have to know the chief, the Principal Secretary, or the President to get a good credit rating – all you need is your phone,” said Ruto.

The credit score is automatically adjusted based on borrowing patterns, ensuring a transparent and fair process. Over two million beneficiaries have already demonstrated good borrowing behavior, which will now translate into higher limits.

Also Read: How to Withdraw Savings from the Hustler Fund

Bridge Loan Product

The Bridge Loan product is designed to help good borrowers transition to mainstream financing by fostering relationships with banks and financial institutions. Borrowers will gain exposure to the formal banking sector, with their Hustler Fund credit history informing their eligibility and loan terms.

Key features of the Bridge Loan include:

• Repayment Period: Increased from 14 days to 30 days.
• Interest Rate: Maintains the current rate of 8% annually.
• Enhanced Limits: Loan limits are tied to the borrower’s behavioral credit score, rewarding consistent repayment.

Hustler Fund Milestones

In its two years of operation, the Hustler Fund has achieved significant milestones:

• Credit Profiles: Established for 24.7 million Kenyans.
• Loan Disbursements: Over KSh60 billion disbursed through personal loans.
• Savings: Borrowers have collectively saved KSh3.4 billion, with mandatory savings split between long-term (70%) and short-term (30%) accounts.

President Ruto announced that long-term savings will be managed by the Kenya National Entrepreneurs Savings Trust (KNEST), a government pension scheme offering an 11% Treasury Bill interest rate—higher than traditional bank rates.

“Instead of putting your money in the bank where it earns 4, 5, or 6 percent interest, KNEST will give you the Treasury Bill’s rate which currently stands at 11 percent,” said Ruto.