Safaricom, Kenya’s most popular telecom provider, has joined forces with NCBA and KCB to provide lower rates for their consumers.
The financial technology company intends to publicize new, lower rates of up to 40% off on Fuliza beginning on October 1.
This news comes after Safaricom revealed that Kenyans used its overdraft service Fuliza to borrow an average of Sh1.6 billion per day between January and June of this year.
Borrowers will benefit from a 40% reduction in daily rates for loans under 1000 Kenyan Shillings, as well as a three-day grace period. The one percent excess fee on all loans, however, will be kept by the corporation.
Fuliza, which was introduced in 2019, has made it much simpler for Kenyans to conduct transactions and meet their financial needs. Fuliza has surpassed the lending process of M-shwari.
Users having a positive limit and no outstanding money on their Safaricom account can use the service.
More money could be made as a result of this change if it encourages more people to start using the fuliza service. The Central Bank has begun conducting extensive research on fintech lending apps due to concerns over their potentially exploitative practices.
This news follows the recent statement by Safaricom that MPESA would be splitting off from Safaricom in January 2023.
The separation, according to CEO Mr. Ndegwa, would result in the formation of a holding company that will oversee the telecommunications providers’ mobile money services. Mr. Ndegwa stated, “We are also able to monetize some of the assets we have, for example the towers that we could lease in the future, so maybe have tower company.” Safaricom plans to expand into a number of different companies in the future.
