Safaricom roll out an overdraft facility

Telcom giants Safaricom have introduced an overdraft facility days after they reported a half year profit before tax of Ksh 31.5 billion.

The overdraft service is called Fuliza and will allow customers to pay for their goods and service if when they do not have sufficient amount in their M-Pesa account.

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The new service resembles that of Okoa Jahazi where customers can borrow airtime is expected to take Safaricom to the next level amid previous fear of increased taxes by the government.

As at the end of September Safaricom reported they earned Ksh 35.52 billion from M-Pesa services which was an 18 percent increase from Ksh 30 billion last year.

The overdraft facility is in partnership with Kenya Commercial Bank (KCB) and Commercial Bank of Africa (CBA), will see its customers part way with 0.5 percent of the borrowed amount in order to complete their transaction.

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Both KCB and CBA have incorporated M-Pesa in their system in form of M-Shwari and will now use customers transactions on M-Pesa and airtime as a basis of how much to lend a customer using Fuliza.

Speaking during the launch of Fuliza, Safaricom CEO Bob Collymore said that customers can borrow as much as Ksh 50,000 depending on the transactions.

In October Safaricom increased its charges on airtime, data bundles and M-Pesa transactions after the government increased the taxes.

Through Fuliza they will try and introduce an extra source of revenue and boost there already service of M-pesa.

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Slavian Mwangecho
Passionate blogger on a day to day activities happening in Kenya, Africa and around the world. A keen follower of the latest news making headlines around the world

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