President William Ruto speaking at town hall meeting at KICC /Photo courtesy/
President William Ruto has confirmed that the government, through the State Department of Creative Economy, has paid Ksh 500 million to secure Kenya’s position as the host of the African Grammy Awards. Speaking at a Town Hall meeting at the Kenyatta International Convention Centre (KICC) on December 9, 2024, during the second anniversary celebration of the Hustler Fund, President Ruto emphasized that this move is part of his administration’s efforts to strengthen Kenya’s creative economy and establish the country as a global entertainment hub.
Earlier this year, in April, President Ruto had announced Kenya’s involvement in the Grammys through a collaboration with Grammy Global Ventures, which he believes will play a significant role in incorporating performing arts into the country’s education system. He assured the public that the payment has been made, expressing confidence in the progress of securing Kenya’s spot in the prestigious event.
However, some Kenyans have expressed concerns, arguing that the 500 million could have been better used to address the country’s development challenges.
During the event, president Ruto also unveiled two initiatives aimed at enhancing the effectiveness of the Hustler Fund. First, the creation of a Hustler Fund behavioral credit rating system was announced, designed to improve credit access for borrowers who repay loans within the stipulated 14 days.
The system assigns a score from A1 (Very Good) to C3 (Very Poor), with beneficiaries’ credit limits adjusted based on their scores. Good borrowers will be able to double or even triple their credit limits, with over two million beneficiaries already demonstrating positive borrowing behavior.
The head of state further introduced the Bridge Loan product, aimed at transitioning responsible borrowers into the mainstream banking sector. This product allows good borrowers to access larger loans with a longer repayment period, increasing the current 14-day repayment limit to 30 days. Interest rates will remain at 8% per annum.
Beneficiaries will be able to establish relationships with banks and use their credit history to improve their bankability.
In two years, the Hustler Fund has impacted 24.7 million Kenyans, disbursing over KSh 60 billion in loans. Borrowers have also saved KSh 3.4 billion in mandatory savings, with 70% going into long-term savings and 30% into short-term savings. The long-term savings will now be managed by the Kenya National Entrepreneurs Savings Trust (KNEST), offering better returns than traditional bank savings, with an interest rate of 11%, the same rate as Treasury Bills
