Safaricom has launched an expanded suite of credit solutions aimed at providing more flexible, transparent, and affordable short-term financing. The enhancements, targeting both individual consumers and businesses, are designed to deepen the utility of the M-PESA platform and address critical cash flow challenges, particularly for the nation’s micro, small, and medium enterprises (MSMEs).
The rollout represents a multi-pronged strategy to embed credit more seamlessly into the daily operations of millions of Kenyans who rely on mobile money. For the business community, the introduction of overdraft facilities for Lipa na M-PESA till users stands out as a pivotal development.
Merchants can now access instant overdrafts ranging from KES 1,000 to KES 400,000 directly through the M-PESA Business App or USSD. This revolving credit facility, available upon meeting repayment terms, is expected to provide a vital buffer for managing inventory, paying suppliers, and smoothing out operational hiccups during periods of uneven revenue.
“Access to timely credit is the lifeblood of small businesses,” noted a market analyst familiar with the sector. “By leveraging their existing M-PESA transaction history, Safaricom is effectively using data to democratize access to working capital, bypassing many traditional banking hurdles.”
Complementing the overdraft product are dedicated short-term business loans under the Taasi Pochi and Taasi Till banners. These loans, offering up to KES 250,000, are tailored for specific needs like restocking and covering urgent operational costs. They provide entrepreneurs with a faster, collateral-light alternative to conventional bank loans, which often involve lengthy approval processes.
Safaricom has focused on enhancing its popular Fuliza overdraft service, which allows M-PESA transactions to complete even with insufficient balances. Key improvements include increased transparency in how credit limits are calculated and clearer guidelines for users to build their limits over time through responsible usage. In a bid to improve affordability, maintenance fees on smaller Fuliza loans have been slashed by up to 40%.
A new feature allowing customers to offset their Fuliza balances using accumulated M-PESA loyalty points adds a layer of convenience and rewards consistent platform engagement.
“These are not just product updates; they are strategic steps towards a more inclusive financial system,” said Peter Ndegwa, CEO of Safaricom, in a related statement. “Our goal is to ensure that both individuals and businesses, especially MSMEs, have fast, reliable, and cost-effective financial tools at their fingertips to navigate their daily needs and pursue growth.”
The expansion is widely seen as a move to further cement M-PESA’s central role in Kenya’s economy, transitioning it from a payments platform to a more comprehensive financi
By Mountkenyanews