Kenyans borrowed a record $620 million in just one month on Safaricom’s Fuliza overdraft service

Kenya’s Safaricom subscribes borrowed a record Sh6.2 billion ($620 million) in just one month on the Safaricom’s Fuliza overdraft service.
  • The Fuliza overdraft facility, which was launched on January 5, is a partnership involving Safaricom, Commercial Bank of Africa (CBA) and KCB Group.
  • Safaricom subscribes borrowed a record Sh6.2 billion ($620 million) in just one month on the Safaricom’s Fuliza overdraft service.
  • The banks provide M-Pesa users with top-up loans whenever they need to make a transaction, but find they lack enough money in their mobile cash wallets.

Kenya’s Safaricom subscribes borrowed a record Sh6.2 billion ($620 million) in just one month on the Safaricom’s Fuliza overdraft service, clearly demonstrating a huge demand for instant, micro-loans in the country.

The Fuliza overdraft facility, which was launched on January 5, is a partnership involving Safaricom, Commercial Bank of Africa (CBA) and KCB Group.

The banks provide M-Pesa users with top-up loans whenever they need to make a transaction, but find they lack enough money in their mobile cash wallets.

“The number of customers who have opted in (to Fuliza) is 4.2 million and Sh6.2 billion has been disbursed,” said Safaricom chief executive Bob Collymore in a statement.

The fast-paced growth, if maintained, is set to boost the fees collected by Safaricom and the two partner banks.

The Sh6.2 billion worth of revolving credit disbursed in one month is equivalent to an average daily lending of more than Sh200 million ($2 million).

The amount also rivals the loan books of some of Kenya’s small banks.

The Fuliza loans attract a facility fee of 1.083 percent of the value of the credit.

An additional administrative fee of up to Sh30 is charged for each day that the loan remains unpaid.

The overdraft facility has a term of 30 days beyond which a borrower is deemed to be in default.

Recovery of the loans is enforced through deductions from customers’ balances and inflows into their CBA and M-Pesa accounts.

Fuliza brings the overnight lending concept to the masses, with borrowers’ creditworthiness determined by an analysis of their transactions and borrowing history among other factors.

Borrowers can take loans of up to Sh70,000 ($700).

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Talent manager Teebillz praises BBNaija's Tacha for not 'opening her legs'

Talent manager Teebillz praises BBNaija's Tacha for not 'opening her legs'

19-year-old girl stabbed multiple times in Accra after catching her brother & mother having sex

19-year-old girl stabbed multiple times in Accra after catching her brother & mother having sex

You should not do any of these while visiting the Oba's palace in Benin

You should not do any of these while visiting the Oba's palace in Benin

'I never said donate money to me' - Davido clears air on largess received from fans during CNN interview

'I never said donate money to me' - Davido clears air on largess received from fans during CNN interview

Man builds house upside down; toilet, kitchen & everything inside is overturned (video)

Man builds house upside down; toilet, kitchen & everything inside is overturned (video)

Rema's manager, Sean Okeke responds to DJ Neptune's statement, regarding the ongoing 'For You' drama

Rema's manager, Sean Okeke responds to DJ Neptune's statement, regarding the ongoing 'For You' drama

WCQ: Minimise mistakes to avoid Morocco, Algeria, Senegal, NFF President Amaju Pinnick tells Super Eagles

WCQ: Minimise mistakes to avoid Morocco, Algeria, Senegal, NFF President Amaju Pinnick tells Super Eagles

Iheanacho, Collins underwhelm - Player ratings: Liberia 0-2 Nigeria

Iheanacho, Collins underwhelm - Player ratings: Liberia 0-2 Nigeria

Kanye West shares photo kissing Kim Kardashian after admitting he wants her back

Kanye West shares photo kissing Kim Kardashian after admitting he wants her back