Safaricom and KCB Bank Kenya (KCB) have officially rolled out a new service called ‘Fuliza ya Biashara’, which will enable business owners to access goods on credit.
As a result, businesses would be advanced an overdraft of between Sh1,000 to Sh400,000, with an interest-free period of two days. Traders will be allowed to draw multiple overdrafts for as long as it is within their limits.
The service attracts a two percent daily access fee for up to 29 days and a daily maintenance fee between Sh12 and Sh250, depending on the amount tapped.
“With more than 538,000 businesses accepting payments through the service, our strategy is to now go beyond collecting payments by providing business owners with tools to manage and grow their businesses,” Safaricom CEO Peter Ndegwa said.
The launch has since elicited mixed responses from Kenyans online with many turning to social media to share their views.
“Fuliza Biashara will be better than hustlers fund biashara loan since hustler wants us to add our KRA pin in the terms and conditions,” read one comment.
“The interest rate is a rip-off. Any serious business man will consider the Hustler Fund,” read another.
Another comment says: “Move to counter incoming Hustler biashara fund this is healthy for the economy.”
Fuliza ya Biashara is M-PESA’s first credit solution dedicated to businesses and the latest in a string of innovations targeting business owners on the platform.