Kenya’s leading telco, Safaricom has unveiled an upgraded suite of credit solutions aimed at empowering small and medium-sized enterprises (MSMEs) across Kenya. This initiative, developed in collaboration with financial institutions, leverages the M-PESA platform to provide accessible, collateral-free loans directly through mobile devices.
The revamped credit offerings include:
- Taasi Till: Short-term loans ranging from KES 1,500 to KES 250,000, available via the M-PESA Business App or USSD code *234#. Repayments are due within 30 days.
- Fuliza Biashara: Overdraft facilities starting at KES 1,000, with limits extending up to KES 400,000. Repayments are linked to incoming payments, offering businesses more flexibility.
- Taasi Pochi: Credit facilities between KES 1,000 and KES 250,000, accessible through the Pochi la Biashara wallet via USSD code 3348# or the M-PESA App.
To qualify for these loans, businesses must have an active till or Pochi la Biashara account that has been operational for at least six months. Upon approval, funds are disbursed instantly, with repayment periods ranging from 14 to 30 days.
Safaricom CEO Peter Ndegwa said the new products will allow businesses to focus on other areas of growth.
“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,” he said.
This move addresses the longstanding challenge faced by many SMEs in accessing timely and affordable credit, often hindered by traditional banking requirements. By integrating these credit solutions into the M-PESA ecosystem, Safaricom aims to streamline the borrowing process, enabling business owners to focus on growth and sustainability.
“Small businesses power Kenya’s economy. We’re using technology to make credit more accessible so that MSMEs can keep growing without disruption,” Ndegwa added.
Safaricom’s overdraft facility Fuliza has recorded significance success since its introduction in January 2019 and the company aims to ride on this success in providing loans to MSMES. The company reported in March that active users subscribed to Fuliza rose from 7.9 million to 7.1 million subscribers,an increase of 12 per cent from the previous year.
The introduction of affordable loans to MSMEs marks a significant step in Safaricom’s ongoing efforts to support the digital transformation of Kenya’s economy, particularly in the SME sector.