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Safaricom has launched a new product in the market, Fuliza ya Biashara, an overdraft facility for businesses. The new overdraft facility will allow companies to borrow up to Ksh. 400,000.
In 2019, Safaricom introduced Fuliza; an overdraft mobile money. The product was jointly operated by Safaricom and two of Kenya’s largest banks, NCBA and Kenya Commercial Bank Limited (KCB).
Previously the product was restricted to individuals seeking to complete payments when they have insufficient funds in their M-Pesa wallets. With a new window open for businesses, the product will allow business owners to complete transactions, by overdrawing their accounts, when they have insufficient funds in their M-PESA Business tills.
Read: ‘Fuliza economy’: Kenyans borrow Sh1.6b daily amid economic woes
For a business owner to qualify for Fuliza ya Biashara, he/she must opt into the M-PESA Business till and be active on M-PESA Business service for at least 6 months.
The product will be available to all business owners using M-PESA Business. However, the business owners using Pochi la Biashara will not enjoy this facility, since it is specifically tailored for business owners with a stand-alone store, with active stores on M-PESA Business till.
How will business owners activate Fuliza ya Biashara?
- Dial *234# from nominated number
- Select M-PESA Business Till
- Select Business Loans
- Select Fuliza ya Biashara.
- Accept Terms & Conditions
- Enter Operator ID
- Enter Operator PIN
- Merchants will receive a message confirming that they have successfully opted in and the Fuliza ya Biashara limit assigned.
Transactions that Fuliza ya Biashara can do
Fuliza ya Biashara can be used only for the following transactions done on the till through the nominated number:
- The Pay to another Buy Goods till
- Pay to a mobile number/customer.
- Pay to a utility (Pay bill) till
- Withdraw to the nominated number.
- Withdraw to M-PESA agent.
The facility allows a business owner to overdraw multiple times for different transactions until they reach their limit, from a Minimum of KSh 1 up to the merchant’s assigned Fuliza ya Biashara limit.
Payment Period and Fees
Fuliza ya Biashara is payable within 30 days. However, business owners are encouraged to clear their Fuliza ya Biashara facility as soon as they can. Deductions towards repayment will be made automatically from collections made to the till every 30 minutes of the hour. When there is insufficient cash in the till, the system will keep retrying to recover the payment until funds are available in the till.
| Daily Maintenance Fee | Access Fee for every Disbursement | ||
| Band (KSh.) | Tariff (KSh.) | Tariff (KSh.) | |
| 1. | 1 – 999 | 0 | 2% |
| 2. | 1000 -2,499 | 12 | |
| 3. | 2,500 – 5,000 | 30 | |
| 4. | 5,001 – 15,000 | 50 | |
| 5. | 15,001 – 35,000 | 150 | |
| 6. | 35,001-70,000 | 200 | |
| 7. | 70,001 – 100,000 | 250 | |
| 8. | 100,001-400,000 | 250 | |
How to Check Outstanding Balance
The Business owner can query their outstanding balance, Mini statement, and due date via USSD.
- Dial *234#
- Select M-PESA Business Till
- Enter Store Number
- Select Business Loans
- Select Fuliza ya Biashara.
It is important to note that a Business owner that does not pay their Fuliza ya Biashara on time will not be able to access the overdraft service, their limit will be reduced and eventually, they will be listed on CRB after 91 days of their due date.
Fuliza ya Biashara is paid back as soon as funds are collected in the business Till. Safaricom Plc encourages business owners to make payments via Lipa na M-PESA Till to settle their overdraft facilities at suitable times, to avoid being listed on CRB or being denied the service.
To increase Fuliza ya Biashara limit, business owners should encourage their customers to pay via Lipa na M-PESA. The more the transactions the more the limit grows.
How to Opt-Out of Fuliza ya Biashara
The business owner can use the below steps on USSD to opt out, after settling any outstanding balances they may owe.
- Dial *234#
- Select M-PESA Business Till
- Enter Store Number
- Select Business Loans
- Select Fuliza ya Biashara.
Safaricom has partnered with KCB Bank Kenya to roll out Fuliza ya Biashara. Fuliza for business will see Safaricom tap into over 538,000 enterprises currently using its payment service, Lipa na M-Pesa, as it sees an opportunity to offer the overdraft facility for working capital needs such as boosting stock and paying rent and utilities.
“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,”
Peter Ndegwa, CEO Safaricom
The overdraft limit will be reset every time a repayment is made, enabling business owners to access new overdrafts, including the amount they just repaid immediately. The limits will be raised or lowered based on transaction history and repayment.
“We believe that the roll-out of this exciting feature will give Kenyan entrepreneurs the headroom to scale up their business operations without getting into the danger of not servicing some of their critical needs like payments to suppliers,”
Annastacia Kimtai, managing director at KCB Bank Kenya.
“A business owner that does not pay their Fuliza ya Biashara on time will not be able to access the overdraft service, their limit will be reduced, and eventually they will be listed on CRB after 91 days of their due date,”
reads the terms and conditions of the product.
Safaricom will be looking to build on the success of Fuliza for people, which generated Sh5.94 billion for the telco in the fiscal year that ended in March 2022 with daily disbursements of an average of Sh1.38 billion.
The launch of Fuliza ya Biashara, according to Safaricom and KCB, aims to close a gap in access to affordable finance, particularly for small and micro enterprises that have hitherto been excluded due to their size and perceived risk.
Read: New List Of Licensed Mobile Lenders In Kenya 2023.
The most recent in a series of platform advancements aimed at business owners, Fuliza ya Biashara is M-Pesa’s first credit solution specifically designed for enterprises.
Introducing the Lipa Na M-Pesa business till and M-Pesa business app in 2020, Safaricom made it possible for companies to accept payments from tills and manage their cash flow more easily.
The M-Pesa Business App has been downloaded by almost 400,000 companies, and it handles more than 50% of all business transactions on M-Pesa.
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