It has been made public whether or not the Fuliza overdraft service would be discontinued by Safaricom as a result of competition from the Hustler Fund.
Hustler Fund is a government-owned small loan business that works in tandem with Fuliza, allowing Kenyans to buy goods and services, withdraw and transfer money on loan.
Peter Ndegwa, CEO of Safaricom, has stated that Fuliza will be maintained regardless of the outcome of the fund.
He has stated that while Hustler Fund is a personal term loan with a 14-day repayment period, “our customers pay Fuliza overdraft at a restricted duration of five days.”
To fulfill his campaign promise to make it easier for Kenyans to get government funding for new ventures, President William Ruto established the Hustler Fund.
Since Fuliza is already working on new ways to improve the user experience and draw in more Kenyans, Ndegwa insists it has no plans to force the latter out of the market.
The overdraft, he explains, allows customers to access credit in times of financial hardship.
He further clarified that the participation of telecommunications firms in the creation of the fund does not indicate that these companies are being absorbed by the fund but rather that they are being used to disburse the monies sought by Kenyans.
He was reported as saying, “The goal was to make it possible for regular people to get loans in a digital-first fashion, by using their phones and sim cards.”
