In the six (6) months leading up to June of 2022 users of Fuliza; Safaricom’s continuous overdraft service borrowed an average of 1.6 billion Kenyan Shillings every day. This indicates the growing popularity of the service and shows just how much its users depend on it. Especially at a time when the cost of living increased as income reduced, forcing more and more people to go the way of short-term loans.
In the six month period from January 2022 to June 2022 Fuliza paid out a total of 290 billion Kenyan Shillings. This is significantly higher than the 220.38 billion Kenyan Shillings that was paid out by the service during the same period in 2021; January of 2021 to June of 2021.
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The continuous overdraft service; Fuliza by telecommunications giant; Safaricom makes it possible for its users to cater to their essential needs like paying for goods and services, rent, as well as shopping with the ease and speed of Safaricom’s M-Pesa mobile money service.
Fuliza was launched in 2019 and is currently underwritten or insured by NCBA Group and KCB Group.
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As it stands, Fuliza users who borrow anything from 500 Kenyan Shillings to 1,000 Kenyan Shillings are charged a daily interest of 6 Kenyan Shillings. The daily interest charge was previously 10 Kenyan Shuillings per day before the current rate was implemented on the 1st of October 2022. Normal M-Pesa transaction charges also apply.
Fuliza users who borrow up to the maximum of 70,000 Kenyan Shillings will receive 16.7 percent off.
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Fuliza has become the biggest generator of revenue for NCBA Bank. It now accounts for a total of 85.54 percent of NCBA Group’s digital pay outs during the period in review.
The Chief Financial Officer of NCBA Group: David Abwoga stated that, “Obviously given where the macros are we have continued to support our customers through this product.”
Safaricom’s savings and loans service; M-Shwari made up around 20 billion Kenyan Shillings of NCBA Group’s entire digital pay out. During the six (6) month period NCBA Bank paid out a total of 339 billion Kenyan Shillings in Total Loans. This represents a year on year growth od twenty five (25) percent.
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NCBA Group’s Chief Financial Officer: David Abwoga made it known that the growth in digital pay outs have played a role in the slight drop in NCBA Bank’s impairment charges during the six (6) month period. The Bank’s impairment charges during the first half of 2022 had a year on year reduction of six (6) percent to arrive at 5.6 billion Kenyan Shillings.
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