Kenya’s Safaricom Drops Daily Interest Rates on Fuliza, M-PESA Mobile Micro-Loans, By 40%

BitKE · 2026-03-19T05:43:25+00:00

Safaricom has reduced interest rates on micro-loans under its Fuliza service, effective October 2022, lowering charges for loans under 1,000 Ksh by 40%. This move aims to make borrowing more affordable for Kenyans, following discussions among key financial leaders.

BitKE

2026-03-19 05:43:25

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Kenya’s leading mobile operator, Safaricom, has announced the reduction of interest rates on loans less than 1,000 Ksh ($8) starting in October 2022.

The reduction applied to the telco’s micro-loans facility, Fuliza, which it offers in partnership with local banks, NCBA and Kenya Commercial Bank (KCB).

Since its launch in 2019, Fuliza has grown to be the main digital lending product in Kenya. The service sent out, on average, $13.32 million daily in the first half of 2022.

According to Safaricom, interest rates for customers borrowing less than KES 1,000 have been dropped by 40%.

Borrowers will now pay KES 6($0.05), down from KES 10 ($0.08) for KES 1,000 ($8) or less
Borrowers will now pay KES 3, down from KES 5 for less than KES 500 ($4)

Charges on loans greater than KES 1,000 will also see some reduction:

Loan amounts starting from KES 1,001 – KES 5,000 will now attract KES 18 in charges, down 10% from KES 20
Loans from KES 2,500 – KES 5,000 will also attract KES 20 in charges down from KES 25
KES 500 – KES 70,000 loan band will now cost KES 25 daily, reducing by KES 5 from the previous KES 30

NB: The new rates will not apply to borrowers who are currently in debt, and they will have to pay back their Fuliza before they can get new loans under the new regime.

The 3 companies that provide Fuliza will continue to charge a 1% access fee and indicated they will be taking additional steps to make credit cheaper for Kenyans. The CEOs of Safaricom, NCBA, and KCB spoke in a meeting that was also attended by President William Ruto who asked for a drop in credit pricing.

Several players in Kenya’s financial sector were also part of the meeting, including the Governor of the Central Bank of Kenya, Patrick Njoroge.

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