KCB Bank and NCBA serve as the financial intermediaries for Fuliza and the two earn generous commissions on the fees collected on the facility.
Data from the latest annual report from NCBA group indicates that the lender has disbursed Sh1.06 trillion through Fuliza since the product was launched in 2019.
KCB Bank on the other hand reported a 32 per cent growth in Fuliza loans disbursed to Sh96 billion in the previous financial year becoming a key earner for the lender's interest income.
"We are announcing changes to the Fuliza proposition with the goal of amending the features of the product back to it's intended purpose; emergency short term credit," said John Gachora, NCBA Group MD.
President William Ruto who was at the event welcomed the move urging the financial service providers to work with the government to avail credit to low-income earners at single-digit interest rates.
"I have been sent by your customers," he said. "The people who cannot make it to your offices and to the negotiation table have sent me to you."
"Fuliza was a very popular word in our campaigns and I am happy that you were listening," he said. "I am happy that between 4 and 5 million Kenyans will beginning of November be out of the black lists by Credit Reference bureaus, CRBs," he said.
According to the CBK, the use of mobile money hit a historic high in December last year where Kenyans transacted Sh622 billion through their mobile phones.
CBK Governor Patrick Njoroge welcomed the move as a step in the right direction towards reducing the cost of low income earners.
"This is but the first step in ensuring the cost is affordable and ropes more Kenyans into the financial services net," he said.