This archive report was first published on 2 November 2019.
Launched in January this year, Safaricom's Fuliza overdraft service has been a huge success, with customers borrowing Sh140 billion in just nine months of operation.
According to Citizen Digital, the service has raked in Sh1.6 billion in earnings for the telco, a significant boost to Safaricom's MPesa revenues.
The overdraft service allows Mpesa users to send money or pay for goods and services even when they do not have sufficient money in their Mpesa wallets.
Under the service, Mpesa subscribers are able to borrow up to Sh50,000 which is repaid at an interest of 0.5 percent per day.
Safaricom rolled out Fuliza in collaboration with the Kenya Commercial Bank (KCB) and the Commercial Bank of Africa (CBA).
MPesa users can access Fuliza by dialing 243# or by using the mySafaricom app.
As a product, it really works well for us and hence we would expect to see growth in the service, said Safaricom acting CEO Michael Joseph.
