Kenyans Borrow ksh81B From Fuliza in 6 months

Money, News

Kenyans Borrow ksh81B From Fuliza in 6 months

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By the end of June 2019, Kenyans had borrowed Ksh81 Billion on Fuliza. It is estimated that the Fuliza service processes 12 overdrafts per second.

Fuliza was launched in January 2019 in order to offer mpesa users an overdraft to complete their transactions if they do not have enough money in their M-Pesa accounts. 

The overdraft facility is a partnership involving Safaricom, Commercial Bank of Africa (CBA) and KCB Group.

Safaricom customers borrowed Sh81 billion over the first six months of this year from Fuliza. This is according to a report that was given by an analysts at Standard Investment Bank (SIB).

The current revenue sharing formula for the Fuliza product is 40:40:20 for Safaricom, CBA and KCB respectively. 
Fuliza service allows users to complete transactions when they have insufficient funds in their Mpesa account. 

You cannot withdraw the money but you can use it to pay bills, buy goods and send money.

Before Fuliza was introduced, it is said that 58% of Mpesa transactions failed due to insufficient funds. 

1% is charged on the borrowed amount and a maintenance charge that varies depending on the amount borrowed also applies.

Once money is deposited in your M-pesa account the Fuliza service automatically deducts to cater for the overdraft. 

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