Safaricom unveiled a new business credit solution on Wednesday to expand the number of micro, small, and medium-sized businesses (MSMEs) in Kenya that can obtain funding.
This audacious effort aims to empower companies with quick and easy funding choices by introducing flexible loan solutions through the M-PESA network and Pochi wallets.
Safaricom offers auto-repaying business credit via M-PESA
Safaricom’s new offerings include Fuliza Biashara, an overdraft facility for Lipa na M-PESA merchants. It allows multiple overdrafts from KES 1,000 up to KES 400,000 based on eligibility. A key innovation is the flexible repayment system, where repayments are automatically deducted only when there is an inflow into the business, ensuring uninterrupted operations.
Alongside this, the Taasi Till term loan provides short-term credit ranging from KES 1,500 to KES 250,000 for eligible businesses. For users of Pochi la Biashara wallets, the Taasi Pochi product offers instant loans between KES 1,000 and KES 250,000, accessible via the M-PESA app or USSD 3348#.
To qualify, merchants must have maintained active tills or Pochi wallets for at least six months, with funds disbursed directly into their M-PESA wallets and repayment periods spanning 14 to 30 days.
Partnerships and technology driving financial inclusion
This initiative is a collaboration between Safaricom and financial institutions such as KCB Group, Sidian Bank, and DTB, reflecting a shared commitment to democratizing credit access for Kenya’s vast informal sector.
Safaricom CEO Dr. Peter Ndegwa emphasised, “Businesses play a pivotal role in Kenya’s economy and make a significant impact in our communities. Leveraging the power of technology, Taasi will offer convenience and access to credit for MSMEs, allowing them to focus on scaling their businesses.”
The launch also highlighted a shift from traditional collateral-based lending to data-driven credit scoring models powered by platforms like Patascore and Pezesha, which assess creditworthiness based on transaction history rather than physical assets. This approach preserves dignity for entrepreneurs, allowing them to access loans without burdensome collateral requirements.
Esther Waititu, Safaricom’s Chief Financial Services Officer, noted, “Many businesses are actively seeking credit. Our goal is to provide a diverse range of solutions to meet their needs”. Real-life testimonials, such as that of Gakii, a trader who accessed KES 200,000 via Taasi Pochi, demonstrate the transformative impact of these credit products on small businesses.
Safaricom’s digital credit solutions are accessible via the M-PESA Business App or USSD codes *234# for Fuliza Biashara and Taasi Till and 3348# for Taasi Pochi, eliminating paperwork and lengthy approval processes typical of traditional loans.
By expanding credit access through mobile technology, Safaricom aims to unlock opportunities for over 700,000 merchants transacting on Lipa na M-PESA and support Kenya’s MSMEs, which employ 80 percent of the workforce. This move is expected to enhance business resilience and contribute to a more financially inclusive economy