What happened to the hustler fund?

[Githunguri]

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I no longer hear about it after it finished ncba fuliza

[gout]

It is one of the successes of Hasora Revolution though they should have made it default overdraft facility.

The cash crunch is affecting the second phase for Biashara package with higher limits.

I also heard Ndii indicate his plan to have it run like Fuliza without technocrats and politicians is bringing problems. They want a bite.

The amount disbursed stands at Sh27 billion, with the state handling 235,000 transactions per second.

https://www.capitalfm.co.ke/business/2023/04/nearly-a-half-of-kenyans-approve-hustler-fund-cs-chelugui/

[.]

It is one of the successes of Hasora Revolution though they should have made it default overdraft facility.

The cash crunch is affecting the second phase for Biashara package with higher limits.

I also heard Ndii indicate his plan to have it run like Fuliza without technocrats and politicians is bringing problems. They want a bite.

The amount disbursed stands at Sh27 billion, with the state handling 235,000 transactions per second.

https://www.capitalfm.co.ke/business/2023/04/nearly-a-half-of-kenyans-approve-hustler-fund-cs-chelugui/

What happens to the "savings" component of hasora fund?

[.]

I no longer hear about it after it finished ncba fuliza

These sort of schemes never work long term for majority of the people it is precisely designed to help and let me tell you why.
1. You cannot legislate against poor financial habits. Some will use the maney for bangi/ndhom and come cry sirikali saidia once again
2. Politicans will always see these as slush funds
3. Politically created business development facilities always founder long term as the country inevitably moves on to new political issues. If a new regime takes over, they are quickly shelved. Remember the Uwezo, Youth and Women's funds of the Kibaki era ? NYS scandal anyone? What about Anglo-leasing?  Anyone below 25 will not even know what all these are  .

Isapite

In fact it's a smart move by Ruto to give it as little publicity as possible so people can quickly forget it.

In politics - Kenyan politics especially - 99% of voters do not have a political memory beyond 6 months


Ni hayo tu.

[RV Pundit]

Except Ruto has use technology - 27B has already been lent - without any human intervention - just algorithm. That 27B has been achieved less than six month. Meaning Ruto target of 50B per year will be exceeded.

Thanks to tech - by 2027 - Ruto will be able to show a trillion of KES lent to hustlers - at almost zero interest. Fuliza are close to 1 trillion Shs - something like 2B is lent daily - via algorithms. It just terrible they levy 150% interest per annum - this after Ruto forced them to do 50% slash.

Next women fund has been move to tech.

We need to move all these gov funding to FINTECH - this eliminate many problems you talk about - and also give gov ability to scale it.

We have huge opportunity with MPESA - all we need is everyone to use M-pesa - so algorithm can model their behaviour - give credit scores - and those scores be used to in lending - rewarding good behavior. This will create US like credit systems .

I hope in next 5yrs Ruto move to totally eliminate cash except for really small notes. We have to mainstream M-pesa and remove all the cash.

I no longer hear about it after it finished ncba fuliza

These sort of schemes never work long term for majority of the people it is precisely designed to help and let me tell you why.
1. You cannot legislate against poor financial habits. Some will use the maney for bangi/ndhom and come cry sirikali saidia once again
2. Politicans will always see these as slush funds
3. Politically created business development facilities always founder long term as the country inevitably moves on to new political issues. If a new regime takes over, they are quickly shelved. Remember the Uwezo, Youth and Women's funds of the Kibaki era ? NYS scandal anyone? What about Anglo-leasing?  Anyone below 25 will not even know what all these are  .

Isapite

In fact it's a smart move by Ruto to give it as little publicity as possible so people can quickly forget it.

In politics - Kenyan politics especially - 99% of voters do not have a political memory beyond 6 months


Ni hayo tu.

[.]

Except Ruto has use technology - 27B has already been lent - without any human intervention - just algorithm. That 27B has been achieved less than six month. Meaning Ruto target of 50B per year will be exceeded.

Thanks to tech - by 2027 - Ruto will be able to show a trillion of KES lent to hustlers - at almost zero interest. Fuliza are close to 1 trillion Shs - something like 2B is lent daily - via algorithms. It just terrible they levy 150% interest per annum - this after Ruto forced them to do 50% slash.

Next women fund has been move to tech.

We need to move all these gov funding to FINTECH - this eliminate many problems you talk about - and also give gov ability to scale it.

We have huge opportunity with MPESA - all we need is everyone to use M-pesa - so algorithm can model their behaviour - give credit scores - and those scores be used to in lending - rewarding good behavior. This will create US like credit systems .

I hope in next 5yrs Ruto move to totally eliminate cash except for really small notes. We have to mainstream M-pesa and remove all the cash.

This is brilliant blo
In which case Ruto should urge his tech-team to fine-tune the lending such that non-hasoras can be scaled up pretty quickly to amounts that make sense to them that match their credit score.

Meaning if my credit score is super high, I shouldn't just be limited to 10k or whatever my limit is, but upon successful repayment of the first few loans, I should be scaled up pretty quickly to sensible amounts like 100k and 250k and even 500k that can be used for what this category of "hasoras" may call short term projects.

It will be a win win for both this category and Ruto
He will reach his targets faster which will benefit him politically, defaults will be almost zero for this category (there is a reason why they have a super high credit score to begin with;  they've been paying their debts on time sometimes for decades ) and they will benefit by having a sensible amount of short term credit accessible from their phone in seconds that they can use to take advantage of emergent short term opportunities which are always cropping up.

But for that to work for this category, they would need at least a 3 -6 month repayment period. The algorithm can easily tackle that by adjusting repayment period to 6 months or more upon the credit limit qualification hitting a certain bogey, e.g 50k  . While also removing the savings component for this category of "hasoras" once they hit said bogey, as it is meaningless to them for the purposes of this particular type of loan - they are already savers and investors. The rest of the hasoras can remain on the 15 day roller-coaster.

NCBA has already destroyed all competition  for this category through LOOP on this score. No need to even see a single face to qualify for loans as high as 500k and above with repayment periods of up to two years! But at killer interest rates of 17% per annum and higher. The loan apps universe with their 100%+ annual rates  - at 30 days repayment period, 60 at most - of course cannot compete. Very few people with high credit scores touch loan apps.

If Hasora fund steps in to cater to this category with 5% subsidized rates compe even from NCBA kwisia . And economic activity will tick up as those with the ability and clean credit records receive yet another enabling tool to push their enterprises/investments forward. This will lead to a beautiful spiral that generates even more political capital for Ruto as the economy booms further. The investors who have been enabled become very supportive and not want to rock the boat because they are benefiting big time And remember this category of hasoras are the "influencers" when it comes to politics because they employ many, their opinions are respected in the places they work and live etcetera 


Ni hayo tu.