Safaricom’s Fuliza loan book surged to Ksh 176 billion six months to June compared with Ksh 81 billion in 2019, according to its recent Sustainable Business Report.
According to the report, Kenyans borrowed KSh245 billion in the 2020 Financial Year, compared to KSh29 billion borrowed a year earlier.
The total number of transactions in the period under review hit 393 million compared to 46.4 million registered in 2019.
“The traction that the popular facility had from its launch in January 2019 continued through the period under review, with strong growth in both numbers of customers and volumes of disbursements,” reads the report.
Fuliza is an overdraft facility which the telco says it is a data insight-driven product that allows customers to complete transactions even with insufficient balances in their M-pesa wallets.
The product is underwritten by KCB Group and NCBA Group, which already had partnerships with Safaricom to offer short-term loans on the M-Pesa platform, KCB Mpesa, and M-Shwari.
However, the overdraft facility attracts a daily charge of 0.5 percent of the borrowing as a top-up to enable M-Pesa clients to complete transactions.
Whenever a customer receives an inflow into their M-PESA wallet, the overdrawn position is regularized.