Kenya’s leading mobile operator, Safaricom, revealed that subscribers borrowed Sh140billion in nine months through their overdraft service, Fuliza.
Fuliza, which charges customers between Sh5 and Sh30 per day on amounts borrowed, has since its launch in January 2019, earned the company Sh1.2billion.
The overdraft service was developed to enable customers complete their transactions after their M-Pesa balance was used up.
The service saw lending by the telecommunications giant increase by 100 percent in six months that ended on September 30.
According to Michael Joseph, Safaricom’s acting Chief Executive Officer(CEO), growth is expected in the service.
“As a product, it really works well for us and hence we would expect to see growth in the service,” Said the acting CEO.
The acting CEO, however, expressed fear that Kenyans are on a path to falling out of control in terms of borrowing.
“It is true there is a merry go round of borrowing. These products have helped people but I fear they are on the verge of falling out of control,” he said.
Fuliza M-Pesa came after M-Shwari and KCB M-Pesa services by the telco meant to lend money to customers.