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Safaricom Plc CEO,Peter Ndegwa He is urging the CEO's to advance the agenda on the importance of partnerships in resolving pressing global challenges such as climate change.[Photo/File/Courtesy}
Safaricom has slashed interest rates on Fuliza loans below Sh1000 by 40 per cent and introduced a three-day grace period for borrowers.
The new rates, effective October 1, will see customers borrowing Sh500-1000 pay a daily interest charge of Sh6 down from Sh10.Further, those borrowing loans of between Sh101-499 will attract a Sh 3 daily charge down from Sh5.
In the new tariffs, users borrowing Sh1001-1500 will pay a charge of Sh18, a 10 per cent discount from Sh20, while those who will borrow Sh1500-2500 will, in effect, pay Sh20, down from Sh25, reflecting a 20 per cent discount.
Those who seek to draw Sh2500-70,000 will also enjoy a 16.7 per cent discount, to pay a daily charge of Sh25 down from Sh30.
Despite the new rates, the telco and its partner banks, KCB and NCBA, have retained the 1 per cent access fee on all borrowings.
All customers who already hold a Fuliza loan by the start of the new charges will continue paying their loan using the old tariffs. The new tariffs will start once a user has fully settled their debt.
For those with no outstanding debt, the new rates will apply immediately.
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In the six months to June this year, Kenyans borrowed an average of Sh1.6 billion daily from fuliza, showing increased dependence on the service that offers short-term loans amid reduced income as the high cost of living bites.