Safaricom, Kenya’s largest telecommunications company, has announced that its overdraft service, Fuliza, will remain available even as the Kenya Kwanza’s Hustler Fund has been successful. The company’s CEO, Peter Ndegwa, explained the difference between the services during an interview with Citizen TV.
Fuliza is a limited-time overdraft service that allows customers to borrow money for five days. On the other hand, the Hustler Fund is a personal term loan to be paid back after 14 days. Ndegwa stated that the telco reduced the cost of Fuliza to make it more accessible to customers, enabling them to access the overdraft freely when needed. Recently, Fuliza introduced a feature that now allows customers to withdraw Fuliza balances right on their phones without having to send it to someone first.
The CEO also highlighted the telecommunications company’s role in launching the Hustler Fund. Safaricom’s role was to provide customer service elements, and banks disbursed the funds through the company’s platform. The intention behind this was to allow ordinary Kenyans to access loans in a digital-first way, through their phones using sim cards.
The Hustler Fund was launched in November 2022 by President William Ruto, and so far, over 18 million Kenyans have opted into the fund. It is a significant milestone for the Kenyan government, as it demonstrates the success of their efforts to provide financial assistance to small businesses and individuals.
Safaricom’s Fuliza and Kenya Kwanza’s Hustler Fund are two different financial services catering to customers’ varying needs. Safaricom’s Fuliza is an overdraft service, while the Hustler Fund is a personal term loan. The company’s CEO has assured that both services will continue to be available to customers and reduced the cost of Fuliza to make it more accessible. The Hustler Fund has been a successful initiative by the Kenyan government, and many Kenyans who have opted into the fund are a testament to its success.