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Kenya’s Mobile Telco giant, Safaricom, introduced a new product to integrate under a new overdraft facility called Fuliza ya Biashara and a term loan “Taasi Till”
The new credit solution is designed to support small and micro enterprises (SMEs) across the country.
Businesses will have access to credit through an overdraft facility, Fuliza Biashara, and a Term loan ‘Taasi Till’.
This service will allow businesses using Lipa Na M-PESA to access unsecured overdrafts of up to KSh 400,000, providing financial support to manage short-term cash flow challenges.
Through Fuliza Biashara, Lipa na M-Pesa merchants can draw multiple overdrafts from a minimum of Sh1,000 to Sh400,000 based on their assigned limit.
Speaking at the launch, the Safaricom CEO, Peter Ndegwa, said that the merchants will now be able to repay their overdraft flexibly, recovered when there’s inflow on the till to allow business continuity.
“As part of the revamp, merchants will now be able to repay their overdraft flexibly, recovered when there’s inflow on the till to allow business continuity.”
To be eligible for credit for ‘Taasi’ and Fuliza Biashara, Safaricom will require the merchants to have had active tills or Pochi wallets for more than six months.
After approval, the money is then deposited directly into the user’s M-PESA wallet with repayment periods of between 14 and 30 days.
The telco says the initiative aligns with its commitment to driving financial inclusion for businesses across the country.
“Businesses play a huge role in Kenya’s economy, and make a significant impact in our communities. Leveraging the power of technology, Taasi will offer convenience and access to credit for MSMEs, allowing them to focus on scaling their businesses,” Ndegwa said.
“By increasing access to affordable credit to Kenya’s entrepreneurs, especially those in the informal sector, Safaricom and its partners target to drive financial inclusivity and unlock opportunities,” he concluded.
