Small traders in Kenya can now access credit of up to Sh400,000 to grow their businesses, thanks to new financing solutions unveiled by Safaricom in partnership with KCB Bank, Pezesha, and Sidian Bank. The new offerings Fuliza Biashara and Taasi Till are designed to enhance financial inclusion and support the growth of micro, small, and medium enterprises (MSMEs) in the country.
Fuliza Biashara is an overdraft facility tailored for Lipa na M-Pesa merchants, allowing them to draw multiple overdrafts ranging from Sh1,000 to Sh400,000, based on their credit limit. Unlike conventional loans, repayments are flexibly deducted from inflows into the till, helping businesses maintain operations without cash flow disruptions.
Complementing Fuliza Biashara is Taasi Till, a short-term term loan facility offering credit between Sh1,500 and Sh250,000. Interest is charged as a one-time fee depending on the loan period: 3.85% for seven days, 4.71% for 14 days, and 6.41% for 30 days. Whether the loan is paid back on day one or the last day, the total amount repayable remains the same, enhancing predictability for borrowers.
To qualify for these facilities, businesses must have operated active M-Pesa tills or Pochi wallets for at least six months. Approved loans are disbursed directly to the borrower’s M-Pesa wallet, with applications accessible via the M-Pesa Business App or USSD code *234#.
According to Safaricom CEO Peter Ndegwa, the initiative underscores the telco’s commitment to empowering small businesses by offering them convenient and reliable credit tools through digital technology.
The new products follow the earlier launch of Mkopo wa Pochi, a loan solution targeted at small business owners, in collaboration with Pezesha. Mkopo wa Pochi offers a 7-day loan with a one-time fee of 2.76%, with the option to extend at an additional fee and a penalty for late payments.
These solutions mark a significant step toward financial inclusion, enabling entrepreneurs in Kenya’s informal sector to thrive and contribute meaningfully to the economy.
