The Fuliza service, a Safaricom overdraft facility, has been reorganized to keep up with the times.since the conomy is struggling, inflation is high, and everyone is looking for any type of relief. Oh, and the town now has a new sheriff in charge. an administration that came to office promising to improve the lives of the average person. in favor of “hustlers.”
Fuliza program has evolved over the past nearly four years from what we once dubbed the “Okoa Jahazi of M-Pesa” at launch to a crucial component of the nation’s economic machinery.
For comparison, Fuliza borrowings increased by nearly 30% in the first half of this year compared to the same period in 2021.
Between January and June 2022, Fuliza subscribers received advances of Kshs 288 billion, up from Kshs 220 billion the previous year.
The amount was Kshs 176 billion in 2020. Over Kshs 1.5 billion shillings are distributed through Fuliza every day, and if the past three years are any indication, that amount will only increase.
With the transactions of Ksh 1,000 and less, Safaricom’s Fuliza will no longer charge maintenance costs for the first three days thanks to partners NCBA (Bank) and KCB (Bank). More than 80% of Safaricom’s M-Pesa users who also utilize the overdraft feature will be impacted by this change, the company claims.
But the one-time 1% “access fee” imposed by Safaricom and its partners when users access Fuliza, remains in effect.
The action is considered as a response to consumer trends as well as a tactic to encourage consumers to pay back debts owing to them more quickly. Similar incentives are used in M-Shwari, Safaricom’s other service that lets customers save and borrow money.
“This restructuring intends to strengthen Fuliza’s primary function as a 4- to 7-day short-term overdraft facility. Based on the information we have, it is obvious that Fuliza’s original purpose as a short-term loan facility has changed.
Numerous consumer M-Pesa wallets are currently overdrawn for 14–19 days as a result of the COVID-19 outbreak. Fuliza did not intend for this to happen because it encourages unfavorable customer behavior and raises the cost of credit.
Here are the rest of the details concerning the new rates:
Tariff Band Old Daily Maintenance Fee (in Kshs) New Daily Maintenance Fee (in Kshs)
1-100 0.00 0.00
101-500 5.00 Free for first 3 days; 2.50 after
501-1,000 10.00 Free for first 3 days; 5.00 after
1,001 – 1,500 15.00 18.00
1,501 – 2,500 20.00 20.00
2,501 – 70,000 30.00 25.00
