Safaricom has announced a discount of up to 40 per cent on daily services charged on overdraft loan services –Fuliza, starting Saturday, October 1.
In an announcement dated Wednesday, September 28, Safaricom stated that customers who drawdown between Ksh100-500 will be charged a three per cent daily maintenance fee, down from the current five.
Subscribers who take up an overdraft of between Ksh501 – 1,000 will now be charged six per cent on a daily basis.They will also enjoy a special waiver.
“Further, customers that drawdown Ksh1000 and below shall enjoy a waiver on the daily maintenance fees for the first three days,” read the statement in part.
In addition, the daily charges for those taking loans of between Ksh1,001 – Ksh1,500, Ksh1,501 – Ksh2,000 and Ksh2,501 – Ksh70,000 have been revised downwards by 10, 20, and 16.7 per cent respectively.
Safaricom CEO Peter Ndegwa noted that the cumulative discount would see subscribers save half on the interest rates charged.
“In total, these changes in cumulative will lead to 50 per cent overall reduction in fuliza tariffs across the board,” Ngegwa stated.
No change was effected on drawdowns between Ksh1 – 100.
A 40 per cent discount was effected on drawdowns between Ksh100 – 500 which attract a Ksh3 charge from Ksh 5 after the changes.
The same discount was offered to customers who apply for drawdowns between Ksh501 to Ksh1,000 attracting a Ksh6 charge, Ksh4 less than the Ksh10 charged before.
Customers who were charged Ksh20 for a drawdown of between ksh1,001 and Ksh1,500 will now pay Ksh 18 only – accounting for a 10 per cent discount.
Ksh1,501 to Ksh2,500 will enjoy a 20 per cent discount, paying Ksh20 from Ksh25 previously.
Customers applying for a drawdown of between Ksh2,501 and Ksh70,000 will pay Ksh25 rather than Ksh30 as before, with the new charge accounting for a 16.7 per cent discount.
The new tariff will benefit customers who have opted in for Fuliza and have a positive limit with no outstanding balance.
“You will pay the current daily maintenance fees on your outstanding balance. The new discounted price will take place after you clear your balance,” stated the telco company.
Subscribers who are yet to opt-in or have a zero limit were encouraged to continue using the mobile service.
Fuliza is an overdraft solution initiated in a joint partnership between Safaricom, NCBA and KCB Bank in 2019. It is tied to mobile money wallets which enables customers to access mobile loans instantly.