Ruto Announces Major Changes to Hustler Fund and CRB
President William Ruto has announced that the government has removed seven million Kenyans who were blacklisted at the Credit Reference Bureau (CRB), in a bid to encourage Kenyans to borrow.
He was Speaking on Monday night during a town hall meeting at the Kenyatta International Convention Center (KICC).
Adding that a large number of Kenyans who had been blacklisted had borrowed Ksh100 to Ksh2,000 and failed to repay the loans in time.
At the same time, Ruto announced that more than two million borrowers on the state-run Hustler Fund would increase their borrowing limit by as much as 300 per cent.
The government will also increase their repayment period by more than double following the launch of a new borrowing product aimed at graduating them to the formal credit market.
Ruto unveiled the new borrowing product, dubbed Bridge Loan where Beneficiaries will access up to three times their current credit limit at an unchanged annual rate of eight percent.
The repayment period will be extended to 30 days from 14 days, based on a new credit scoring system with nine categories.
Those who have consistently borrowed and repaid on time have been assigned a credit score of A1 or excellent, while the worst score for defaulters is C3, which denotes the worst creditworthiness on the platform. The nine bands are A1, A2, A3, B1, B2, B3, C1, C2, and C3, and the government will use them to demonstrate a borrower’s creditworthiness.
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