Kenya’s biggest telco, Safaricom, has launched new credit products for small and medium-sized enterprises (SMEs), introducing overdraft and short-term loans through its M-PESA platform with limits reaching $3,089 (KES400,000). The new products signal the telecom giant’s increasing focus on financial services as growth in its core voice and data business slows.
The new products include Fuliza Biashara, an overdraft facility allowing M-PESA merchants to draw funds from $7.72 (KES 1,000) up to $3089, and Taasi Till, a short-term loan product ranging from $11.59 (KES 1,500) to $1,931 (KES 250,000). Both services offer flexible repayment terms, with funds credited directly to users’ M-PESA wallets or tills, making them instantly accessible.
The expansion is part of Safaricom’s strategy to diversify beyond its traditional telecom business, which faces slowing revenue growth. With revenues from traditional telecom services under pressure, the company is leveraging M-PESA—its mobile money platform with over 40 million users—to generate new revenue streams through lending, payments, and other fintech services.
“Businesses play a pivotal role in Kenya’s economy and make a significant impact in our communities,” Safaricom CEO Peter Ndegwa said on Tuesday at the launch. “Leveraging the power of technology, Taasi will offer convenience and access to credit for MSMEs, allowing them to focus on scaling their businesses.”
Safaricom is keen to tap into the over 30 million active users who transact over $11.6 billion (KES1.5 trillion) monthly to grow its financial services, including savings, unit trusts, and insurance products, to offset a decline in calls and text revenue. In 2024, M-PESA accounted for 44% of the $2.8 billion (KES 364.3 billion) service revenue after posting a 15.2% growth to $1.2 billion (KES 161.1 billion), compared to a similar period.
The telco will be hoping to replicate the success of Fuliza for individual loans, which averages $19.3 million (KES2.5 billion) daily disbursements, earning it an estimated $46.4 million (KES6 billion).
