Safaricom Telecommunication Service provider in partnership with Kenya Commercial Bank and National Commercial Bank of Africa have been providing an overdraft service Popularly known as Fuliza to it’s customers.
Safaricom has decided to reduced fuliza daily maintenance costs up to 40 percent in a bid to increase productivity.
Safaricom, NCBA and KCB, the three entities that jointly manage Fuliza, will announce the fee cuts on Wednesday as the fee cuts are aimed at impacting the financial inclusion of Kenyans.
In the new tariff, the daily maintenance fee for overdrafts between 101 to 500 and 501 to 1,000 shillings has been reduced by 40 percent from 5 shillings to 3 shillings and from 10 shillings to 6 shillings respectively.
Customers with premium products between Ksh.1001 to Ksh.1500, Ksh.1501 to Ksh.2,500 and Ksh.2,501 to Ksh.70,000 will get 10, 20 and 16.7 percent discounts on daily maintenance fees for the first three days .
The new discount level will be effective from October 1, 2022 and will be open to Fuliza customers with a positive limit who choose and do not have a pending balance.
“We have continued to assess progress in consumer behavior and economic conditions,” NCBA said in a statement announcing the new rate cut.
Fuliza’s overdraft service was launched in 2019 and allows customers to complete M-Pesa transactions even if they don’t have enough funds in their mobile wallet.
The product allows customers to withdraw funds multiple times as long as the user is within a specified limit.
