Safaricom is pushing deeper into financial services as growth from voice and data slows. The telco has revamped its credit products for small businesses, adding overdrafts and short-term loans to strengthen its position in Kenya’s digital lending space.
The new products—Fuliza Biashara, Taasi Till and Taasi Pochi—are designed for MSMEs already using M-PESA for daily payments. They’re built in partnership with KCB, DTB, Sidian Bank and fintech lender Pezesha.
It is a shift that could show where Safaricom sees its future.
Mobile money now brings in more revenue than traditional telecom services and products like M-Shwari and personal Fuliza have seen mass uptake. Now, Safaricom wants to do the same for businesses, especially those in the informal sector, where merchants can now access overdrafts between KES 1,000 and 400,000 or loans up to KES 250,000 based on how actively they use Lipa na M-PESA or Pochi la Biashara.
Eligibility depends on transaction history over at least six months. Once approved, funds are sent instantly to a business’s M-PESA account. Repayments are drawn automatically from future inflows, with terms of 14 to 30 days.
There’s a clear difference from the consumer version of Fuliza, which has faced criticism over debt cycles. This new approach gives businesses more flexibility to repay without stopping daily operations.
Still, the timing says a lot. With pressure from rivals like Airtel Money and growing use of third-party finance apps, Safaricom needs new ways to stay relevant.
What’s less clear is how sustainable this model is. Will small businesses use credit to grow or to plug daily cash flow gaps? Can Safaricom avoid the risks associated with consumer digital loans?
