Safaricom introduces overdrafts to M-Pesa

By professo

The Kenyan telecommunications company, Safaricom, has announced an additional feature introduced to M-Pesa.

Customers will now be able to send money or pay using the mobile money transfer service with insufficient balances following the launch of overdrafts.

The company successfully trialled the overdraft service in November last year, leading to the launch to 24.2mn customers.

The facility has been named Fuliza or Okoa M-Pesa, and will enable users to borrow up to Sh50,000 (US$490.71). The overdraft carries interest of 0.5% per day.


Safaricom partnered with the Kenya Commercial Bank (KCB) and the Commercial Bank of Africa (CBA) in order to establish the service, Kahawa Tungu reported.

The banks will use algorithms based on transactions on M-Pesa to determine each user’s overdraft limit.

The overdraft service can be used as often as required, as long as customers stay within their granted limit.

Mobile commerce transactions hit 526.9mn in Kenta between July and September of last year, totalling Sh1.55trn (US$15.2bn), whilst person-to-person transactions hit Sh2trn (US$19.7bn) during the review period.

The nation’s mobile phone penetration currently sits at 100.1%, with some Kenyans owning more than one sim card.


Featured Articles

Top 10 most innovative telecom operators in the Middle East

With Dubai-based Telecoms World Middle East in full swing, we chart the most innovative telcos from the region – and look at how they are transforming

Top 10 fastest-growing Indian companies in the UK

Business Chief takes a look at the top 10 fastest-growing Indian companies in the UK, according to the India Meets Britain Tracker from Grant Thornton

Top 10 workplaces prioritising people and planet in the UAE

Sustainable, flexible, collaborative, tech-driven, and amenities-rich, the office of the future considers both people and planet – here are 10 in the UAE

Top 10 female HR execs leading Saudi’s workplace transition

Leadership & Strategy

Top 10 largest asset managers by AUM operating in the UAE

Corporate Finance

Top 10 female CEOs leading Africa’s biggest businesses

Leadership & Strategy