Safaricom, partners reduce Fuliza loan interest rates by 50%, cumulatively
Safaricom, alongside the Kenya Commercial Bank and NCBA Bank have announced a reduction of Fuliza loan interest rates by 50 per cent, cumulatively.
Speaking on Wednesday, September 28, 2022, Safaricom CEO Peter Ndegwa also announced that overdraft loans below Ksh1,000 will not attract maintenance fees for the fist three days.
"Beginning 1st of October, all customers will enjoy Fuliza free of the daily maintenance fee for transactions below Ksh1000 and below three days. The 3-day free daily maintenance fee period will allow customers who currently use Fuliza to complete more transactions while attracting more customers to the solution since its more affordable. In addition, we are reducing the daily maintenance fee by 50 per cent for Fuliza," Ndegwa said.
"Customers will also enjoy reductions in the daily maintenance fee for transactions above Ksh1,000 to the maximum of Ksh70,000. We will maintain the Fuliza access fee at the current 1% across all transactions," he added.
Fuliza's new rates
In the new prices, loans below Ksh500 will attract Ksh3 on daily charges down from Ksh5, while loans between Ksh2,500 to Ksh70,000 rates will reduce from Ksh30 daily to Ksh25.
In the six months to June 2022 Kenyans borrowed Ksh288 billion through Fuliza, a 30.7 percent rise from Ksh220.38 billion in the same period in 2021.
Fuliza was launched in January 2019 as an overdraft facility offered by Safaricom through M-Pesa in partnership with Commercial Bank of Africa (now merged into NCBA) and KCB Group.