Fuliza

In an announcement on Wednesday, Safaricom, NCBA and KCB banks announced the reduction, which according to the company is a move that will help the overdraft ...

This will see users have a daily fee of Sh25 down from the initial Sh30. This will be a 10 per cent discount. In the changes, borrowers of between Sh101 to Sh500 will be charged a daily fee of Sh3, down from Sh5.

Safaricom has today held a press conference with NCBA & KCB to announce new Fuliza tariffs effective October 1st 2022. Here's a breakdown.

They will only enjoy the new rates once they clear their balances. It is interesting to note that the companies have called them “tariffs” and not “interest rates”. The new rates will benefit all Fuliza customers who have opted-in and have a positive limit, with no outstanding balance.

NAIROBI, Kenya, Sep 28 – Safaricom has slashed interest rates on Fuliza loans below Sh1000 by 40 per cent and introduced a three-day grace period for Kenya ...

Those who seek to draw Sh2500-70,000 will also enjoy a 16.7 per cent discount, to pay a daily charge of Sh25 down from Sh30. In the new tariffs, users borrowing Sh1001-1500 will pay a charge of Sh18, a 10 per cent discount from Sh20 while those who will borrow Sh1500-2500 will in effect pay Sh20, down from Sh25, reflecting a 20 per cent discount. Further, those borrowing loans of between Sh101-499 will attract a Sh3 daily charge down from Sh5.

In the latest review, the company cut daily charges on loans of up to KSh 1000 from KSh 10 to KSh 6, effective October 1; Loans below KSh 500, ...

The discounted tariff will take effect from Saturday, October 1, 2022," it stated. [KCB](https://www.tuko.co.ke/285614-kcb-mpesa-contacts-loan-customer-care-phone-numbers.html) M-Pesa loans reduced to KSh 46.3 billion from KSh.51.1 billion in the previous year. [Fuliza](https://www.tuko.co.ke/296751-how-fuliza-loans-application-repayment-terms-conditions.html) disbursed loans amounting to Ksh 502.6 billion compared to KSh 351.2 billion issued in the previous year, representing 43.1% growth. [Subscribe to our email newsletter and stand a chance to win TUKO branded gifts! In the latest review, the company cut daily charges on loans of up to KSh 1,000 from KSh 10 to KSh 6, effective October 1. Safaricom revenue from Fuliza disbursement stood at KSh 5.9 billion in the same period under review, compared to KSh 4.5 billion in the previous year. Loans below KSh 500, on the other hand, will attract daily fees of KSh 3 down from KSh 5. - In the latest review, the company cut daily charges on loans of up to KSh 1000 from KSh 10 to KSh 6, effective October 1 Click here to learn the details!](https://www.tuko.co.ke/editorial/474200-tuko-na-form-join-a-giveaway-win-tuko-branded-gifts/) [Safaricom](https://www.tuko.co.ke/263548-safaricom-bonga-points-phones-offer.html) in partnership with local lenders KCB and NCBA, reduced daily charges for loans below KSh 1000 by 40%. - Loans below KSh 500, on the other hand, will attract daily fees of KSh 3 down from KSh 5 in what would be sweet music to borrowers [Japhet Ruto](https://www.tuko.co.ke/authors/japhet-ruto/)

Safaricom have announced that they will reduce daily maintenance fees by up to 40% on their mobile overdraft service, Fuliza.

Fuliza loans between Ksh. 20, down from Ksh. Fuliza loans of Ksh. Whereas Fuliza loans of between Ksh. 1,501 to Ksh. 6, down from a previous fee of Ksh.

Fuliza accounted for 82.5 per cent of the Sh585 billion digital loans at NCBA in the financial year ended December 2021.

Central Bank of Kenya (CBK) has published the Digital Credit Providers Regulations, 2022, which will require all digital lenders to apply for licences by September 2022. The rising popularity of Fuliza has come on the back KCB's M-Pesa Vooma and NCBA’s Mshwari posting declines in value of loans. The average loan amount KCB M-Pesa was Sh9,070 while that on Mshwari was Sh6,047. NCBA said it disbursed Sh88 billion via Mshwari, a product that was launched in January 2013 as a savings and loan service. Customers are charged a one-off 1.083 per cent interest and a fee that depends on the outstanding balance. Customers who do not clear the overdraft within 30 days are barred from utilising their unused Fuliza limit until they settle the outstanding amount.

From left: NCBA CEO John Gachora, Safaricom CEO Peter Ndegwa and KCB CEO Paul Russo. [Wilberforce Okwiri, Standard]. Borrowers of Fuliza will, from October ...

"During the Covid-19 pandemic, we saw a surge in the number of customers accessing credit. We began observing the numbers... With the right use of Fuliza, customers will see a benefit in the cost of credit and borrowing experience.” From the data, it is clear the original intent for Fuliza to be a short-term facility for four to seven days has evolved. “So, for the first three days, customers will not have to pay a daily maintenance fee which they pay today,” Safaricom Chief Executive Officer Peter Ndegwa announced on Wednesday, September 28. Borrowers of Fuliza will, from October 1, 2022, be freed of daily maintenance charges for transactions below Sh1,000 in the first three days of borrowing.

Safaricom, alongside lending partners NCBA and KCB Bank, said the companies are restructuring the facility starting October 1 to reduce the cost of credit on ...

“Fuliza was a very popular word in our campaigns and I am happy that you were listening,” he said. According to the company’s latest annual report, Sh502.6 billion was disbursed through the facility in the year ended March 2022, an increase of 43 per cent compared to same period last year. “This will allow customers who currently use Fuliza, to complete more transactions while attracting more customers.” Safaricom said the changes cumulatively lead to a 50 per cent overall reduction in Fuliza tarriffs across the board. [Safaricom](https://www.standardmedia.co.ke/business/article/2001456257/plans-to-split-safaricom-airtel-could-start-in-january-says-cbk), alongside lending partners NCBA and KCB Bank, said the companies are restructuring the facility starting October 1 to reduce the cost of credit on low income borrowers. “I have been sent by your customers,” he said. [Fuliza tariffs](https://www.standardmedia.co.ke/business/article/2001456831/fuliza-economy-kenyans-borrow-sh16b-daily-amid-economic-woes) in a move that comes as a reprieve for millions of borrowers in the country.

Safaricom, KCB Group and NCBA Group have lowered daily charges on Fuliza mobile money product by up to 40pc.

Customers who will Fuliza between Ksh 1501-2500 will also see a Ksh 5 reduction on their daily maintenance fee which has been slashed b20pc, from Ksh 25 to Ksh 20. The service which Safaricom said has 6.9 million distinct customers also raked in Ksh 5.94 billion in revenue which recorded the fastest year-on-year growth rate of 31pc from Ksh 4.54 billion. The three partners also announced a 10pc discount on all transactions within the tariff band of Ksh 1001-1500 where customers will pay Ksh 18 as DMF from the previous Ksh 20. Borrowers who have Fuliza limits of between Ksh 2,500-70,000 will now pay Ksh 25 as DMF from Ksh 30 beginning next month. Consumers will now pay Ksh 3 from Ksh 5 as Daily Maintenance Fee (DMF) for all drawdowns within the tariff band of Ksh 101-500 while those in the tariff band of between Ksh 501-1000 will be charged Ksh 6 from the previous Ksh 10, a 40pc reduction. Additionaly, customers who drawdown Ksh 1000 and below shall enjoy a waiver on Daily Maintenance Fee (DMF) for the first three days.

The step by Safaricom and its bank partners to lower the charges of the Fuliza mobile overdraft is the right one.

The law demanded that all digital lenders must seek CBK registration by September, prompting some fintechs to sue on grounds that the Act was unconstitutionally and aimed at limiting their operations. [By EDWIN MUTAI](/bd/economy/uhuru-ministers-walk-away-with-millions-in-farewell-pay-3965928)By EDWIN MUTAI Punitive interest rates of more than 100 percent annual charges plus fees have led borrowers to be listed on the credit reference bureaus (CRBs).

Safaricom and partners have made Fuliza overdrafts cheapera win for the new government. But President Ruto wants more than price cuts.

The president also said that he wanted Kenya’s leading financial institutions, both traditional and fintech, to work with his administration to roll out Hustlers Fund, a collateral-free SME financing product that, like Fuliza, was a central part of his campaign. Access to cheaper credit was a key part of his message during the political campaigns. You are aware that Fuliza was a very popular word in the campaign and I am happy that you are listening.” We have an ecosystem that we need to grow. In our view, this is but a first step in ensuring that cost is affordable and draws more Kenyans into the financial services net,” Patrick Njoroge, Governor of Kenya’s Central Bank told the audience at the same press conference where the three CEOs announced the new tariffs. The price slashes come as newly elected president Ruto has vowed to review Kenya’s Credit Reference Bureau (CRB) framework that has blacklisted thousands of borrowers for defaulting on loans. I am very confident that by walking in the direction you have started, we will get to the right destination. Fuliza users who borrow between more up to a cap of Sh70,000 ($580) will get up to 16.7% off. In October 2021, Safaricom announced new Fuliza Terms and Conditions that would see Fuliza defaulters blocked from accessing M-Shwari and KCB M-Pesa loan services, helping to consolidate Fuliza’s position as a leading credit facility for Kenyans. Per a report published by Kenyan Wall Street, a local business publication, Kenyans borrowed an average of Sh1.6 billion ($13.2 million) daily from Fuliza, in the first six months of 2022. Introduced in 2019, Fuliza is an overdraft mobile money overdraft product jointly operated by Safaricom and two of Kenya’s largest banks, NCBA and Kenya Commercial Bank Limited (KCB). The new rates only apply to Fuliza users who are not currently indebted.