Relief for borrowers as Safaricom, KCB and NCBA cut Fuliza fees by 40%

• In the latest review, the company reduced daily charges on loans of up to KShs 1,000 from KShs 10 to KShs 6, effective October 1.
• Loans below KSh 500, on the other hand, will incur a daily charge of KSh 3 instead of KSh 5, which would be sweet music for borrowers.
• Between April 2021 and April 2022, Fuliza’s daily income reached KSh 1.37 billion, showing that Kenyans rely on costly short-term debt

Kenyan borrowers have a reason to smile after giant telecom company Safaricom, in partnership with local lenders KCB and NCBA, cut daily charges for loans below KSh 1,000 by 40%.

The telephone company also introduced a three-day grace period.

In the latest review, the company reduced daily charges on loans of up to KShs 1,000 from KShs 10 to KShs 6, effective October 1.

“Additionally, customers who withdraw KShs 1,000 and below will be granted a daily maintenance fee waiver for the first three days. The discounted rate will take effect from Saturday, October 1, 2022,” he said.

However, the company retained the access right of 1% on all borrowings.

Loans below KSh 500, on the other hand, will incur a daily charge of KSh 3 instead of KSh 5.

Over the past three years, the overdraft facility introduced in 2019 has gained popularity among Kenyans, especially those on low incomes.

Kenyans Fuliza KSh 1.4 billion a day

Between April 2021 and April 2022, Fuliza’s daily income reached KSh 1.37 billion, showing that Kenyans rely on costly short-term debt.

Fuliza disbursed loans amounting to Kshs.502.6 billion against Kshs.351.2 billion issued the previous year, representing a growth of 43.1%.

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The growth was also reciprocal in the number of subscribers, which jumped to 6.9 million from 5.9 million borrowers.

M-Shwari loans fell from KShs 94.5 billion to KShs 86.1 billion, while KCB M-Pesa loans were reduced to KShs 46.3 billion from KShs 51.1 billion the previous year.

Safaricom’s revenue from disbursement of Fuliza amounted to KShs 5.9 billion during the same reporting period, compared to KShs 4.5 billion the previous year. This represents a growth of 31%.

Fuliza refund

Fuliza’s repayments during the year amounted to KShs. 510.3 billion, or 101.5%, compared to 98.4% the previous year.

During the period, the service charged a 1% access fee and maintenance fee on the outstanding balance ranging from KShs 6 to KShs 36 depending on the loan amount.

Source: TUKO.co.ke