Kenyans who will borrow Ksh 1000 and below from Fuliza will pay no interest rate for the first 3 days starting October 1, 2022. This means that borrowing Ksh 1000 and below and paying it within 3 days will attract no interest.
The announcement was made by the three CEOs of Safaricom, KCB Group, and NCBA at the Fairmont the Norfolk Hotel, Nairobi. The announcement came at a time the discussions about Fuliza dominated the political space as to whether it was healthy for Kenyans.
Fuliza offers short-term loans whose uptake has been rising daily due to the biting cost of living among Kenyans. The product enables M-Pesa customers to transact beyond the M-Pesa balance with over 33 million customers opting in.
“Our intention when launching Fuliza was not to make it a burden for Kenyans, but a product that they would love to use to solve their financial problems,” said Mr. Peter Ndegwa, the CEO of Safaricom, speaking during the joint press conference.
In 6 months to June this year, Fuliza disbursed 290 billion shillings up from 220.38 billion shillings disbursed in the same period last year. This means Kenyans were borrowing about 66,666,666 shillings per hour from Fuliza in the past 6 months.
Fuliza has turned out to become the major moneymaker for NCBA, accounting for 85.54 percent of the group’s digital disbursements during the review period. Safaricom and NCBA partnered to offer the service that became a hit as soon as it was launched.
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