Hustler Fund: A Government-Backed Credit Facility Driving M-Pesa Adoption
The Kenya Kwanza government has introduced the Hustler Fund, a credit facility aimed at providing financial support to Kenyans. Developed in collaboration with private sector partners, this fund has experienced significant uptake since its launch.
During a recent TV interview, Peter Ndegwa, CEO of Safaricom, highlighted the remarkable success of the Hustler Fund through its integration with the M-Pesa platform. Notably, the credit facility has successfully attracted customers who had previously stopped using M-Pesa.
Ndegwa stated, “The Hustler Fund has achieved tremendous success, with over 24 billion borrowed by 15 million customers. We have witnessed 2 million individuals who had discontinued their engagement with M-Pesa returning and actively utilizing the platform for borrowing.”
Furthermore, 6 to 7 million customers are regular borrowers from the fund, underscoring the value that accessible credit brings to Safaricom’s customer base.
Safaricom has encountered a decline in revenue since reducing the cost of its Fuliza overdraft facility. However, this decrease has been offset by increased usage, demonstrating the telco’s focus on long-term value creation through affordable credit solutions. Despite these positive figures, Ndegwa emphasized that the demand for affordable credit remains unmet.
The CEO also highlighted Safaricom’s commitment to customer value creation, mentioning a significant reduction of 70% in data pricing since 2020. The company has also been actively enhancing the quality of its network infrastructure.
Ndegwa stated, “We have lowered data pricing by 70% since 2020, from approximately 22.6 Kenyan cents per MB to about 6.7 cents. All our sites are equipped with 4G connectivity, which is crucial for an optimal user experience. Additionally, we have accelerated the distribution of 4G-enabled phones through our Lipa Mdogo Mdogo initiative.”
Safaricom’s ongoing efforts to provide affordable credit, improve data pricing, and enhance network capabilities reaffirm its commitment to delivering value to its customers.
