Fuliza loans were introduced in early 2019 and it is owned by Safaricom, NCBA and KCB group.
Kenya’s depend large on the fuliza loans as revealed by the statistics. On a single day, Kenyans borrow up to a tune of one point three billion shillings (1.3b). This underlines the dependency on the loans for household use or daily needs.
Fuliza is becoming more popular day by day. Active members on a day are about one point seven million users (1.7m).
The data was revealed today by Safaricom while releasing half-year financial reports. The company posted a net profit of Shillings 37.055 billion for the half-year. The profit was boosted by higher M-Pesa revenue from the fuliza facility.
Within the period of six months, the company disbursed 242.6 billion shillings through the fuliza loans which is an increase of 62% compared to the same period last year.
Fuliza facility has killed other loan products from Safaricom like M-shwari and KCB M-pesa loans. More people prefer fuliza over the other two loan facilities from the company.
The Fuliza loaning facility earned Safaricom Shillings 2.8 billion out of the 3.055 billion shillings net profit for the half-year period. Last year the earnings from the facility were 2.1 billion shillings.
In terms of repayment, the facility is the best compared to the other two loaning facilities from Safaricom. Repayment is 99%, KCB M-pesa 98.6% while M-shwari is 63.5%.
The repayment mode for fuliza loans is unique because the outstanding balance is automatically deducted from any receipts to the M-Pesa account of the borrower.
The interests accrued from the loans per day is as follows:
Amount. Interest
2500/= and above 36/= per day
1500/= to 2500 30/= per day
1000/= to 1500. 24/= per day
Fuliza is one of business strategies the Safaricom telecommunication company is using to attain sustainable development goals.
Other strategies the company is using include m-shwari services, lipa na mpesa among others.
