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| President William Ruto greets Safaricom CEO Peter Ndegwa |
On the back of naming his Cabinet, President Ruto was on it again on Wednesday as he started chipping away the delivery of his manifesto. Like a man on a mission, he arrived unexpectedly at Fairmont the Norfolk Hotel to join the CEO of Safaricom Peter Ndegwa, the CEO of KCB bank Paul Russo and NCBA bank CEO John Gachora moments before Fuliza overdraft charges were reduced.
Having campaigned on the platform of ensuring access to affordable credit to Kenyans, the reduction of charges on the Fuliza will go a long way in helping millions of individuals who use the service on a day-to-day basis.
In the new scheme, Fuliza transactions below Kshs. 100 do not attract daily maintenance fee. All Fuliza loans between Kshs. 101-500 will attract daily charges of Kshs. 3, down from Kshs. 5 with loans between Kshs. 501-1,000 being charged Kshs. 6, the charges previously being Kshs. 10. However, access fee of 1 percent is charged on all transactions.
Customers accessing Fuliza for amounts between Kshs. 1,001-1,500 will be paying Kshs. 18 as daily maintenance fee, down from Kshs. 20 with Customers accessing funds between Kshs. 1,501-2,500 paying Kshs. 20, down from the previous Kshs. 25.
Transactions between Kshs. 2,500 to Kshs. 70,000 also had the daily charges reduced from Kshs. 30 to Kshs. 25.
The new rates take effect from October 1st, 2022.
With Fuliza emerging as the leading mobile loan provider disbursing over Kshs. 1.5 billion daily, the move may help save a few coins. However, it is not an ideal go to solution for a loan given the cumulative nature of the interest rates on the loans.
This is the so called Bottom-Up economy
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