Listed telco Safaricom has improved credit solutions for businesses by expanding its services to micro, small, and medium businesses.
In the new preposition, businesses will have access to credit through an overdraft facility, Fuliza Biashara, and a Term loan ‘Taasi Till’.
Taasi Till is a business credit that offers short-term credit ranging between Sh1,500 and Sh250,000, depending on eligibility. Safaricom has partnered with KCB, Pezesha, and Sidian Bank.
Borrowers will be charged a rate of 3.85 per cent for a seven day loan, 4.71 per cent for a 14 day loan and 6.41 per cent for a 30 day loan applied once on the loan such that whether the loan is repaid on the first day or the last date of the repayment period, the total amount repayable shall be the same.
Through Fuliza Biashara, Lipa na M-Pesa merchants can draw multiple overdrafts from a minimum of Sh1000 to Sh400,000 based on their assigned limit.
As part of the revamp, merchants will now be able to repay their overdraft flexibly, recovered when there’s inflow on the till to allow business continuity.
The credit solutions are available via the M-Pesa business App or USSD *234#.
To be eligible for credit for ‘Taasi’ and Fuliza Biashara, merchants must have had active tills or Pochi wallets for more than six months.
Upon approval, funds are deposited directly into the user’s M-Pesa wallet with flexible repayment periods of between 14 and 30 days.
“Businesses play a pivotal role in Kenya’s economy and make a significant impact in our communities. Leveraging the power of technology, Taasi will offer convenience and access to credit for MSMEs, allowing them to focus on scaling their businesses,” said Peter Ndegwa, Group CEO, Safaricom PLC.
Credit plays a vital role in the financial health of businesses, enabling operations and funding key investments that spur growth.
M-Pesa continues to offer both businesses and individuals frictionless, safe and convenient financial services tools, building a resilient and financially healthy Kenya.
By increasing access to affordable credit to Kenya’s entrepreneurs, especially those in the informal sector, Safaricom and its partners target to drive financial inclusivity and unlock opportunities.
The new credit product for businesses mirrors Mkopo wa Pochi, unveiled in partnership with a local fintech firm, Pezesha, to address the critical need in Kenya’s small business sector.
Launched early last year, the offering targets small business owners, allowing them to access loans directly through their M-Pesa business accounts.
Loans offered through Mkopo wa Pochi come with a one-time access fee of 2.76 per cent on the borrowed amount. Borrowers are given a 7-day repayment term, with an option to extend for an additional week.
The extension incurs a one-time fee of 3.85 per cent for the entire 14-day period. Late repayments are subject to a daily penalty of one per cent for up to seven days, encouraging timely repayments.
by VICTOR AMADALA
