Kenyans borrowed at least Ksh1.2 billion every day on Safaricom’s overdraft facility Fuliza in six months to June 2021 as compared to Ksh972.3 million borrowed daily in a similar period in 2020.
In the six months under review, Kenyans borrowed a cumulative amount of Ksh220.38 billion, a 25 percent increase from Ksh176 billion borrowed in a similar period last year.
“Fuliza is still on a growth path that is why you see the most growth in digital loans this year is coming from Fuliza. We expect it to grow for quite some time and we still feel there is leeway for growth,” NCBA Group chief executive John Gachora said.
The shift comes even as lenders shied away from ‘small’ borrowers, following a move by the Central Bank of Kenya to do away with CRB listing of borrowers who default less than Ksh1,000.
As a result, Fuliza, which allows customers to pay for shopping, rent, sending money to friends and family or paying for goods and services on mobile money service, M-Pesa, has become a soft landing spot for borrowers who cannot get loans from other facilities such as M-shwari and KCB-M-Pesa.
The overdraft service was introduced in 2019 and is underwritten by NCBA Group and KCB Group.