Safaricom has launched Fuliza Ya Pochi, an overdraft facility targeting more than one million eligible Pochi La Biashara merchants in Kenya, giving small traders access to short-term credit when their business wallet balances cannot cover essential expenses.
The facility is designed to help qualifying merchants pay suppliers, purchase stock, send money and settle utility bills even when available funds are insufficient. Safaricom says the product is intended to address cash-flow challenges that can interrupt daily business operations.
Chief executive officer Peter Ndegwa said the facility would help small businesses manage cash-flow gaps and avoid delays in stock purchases and supplier payments.
For many small traders, the timing of customer payments can determine whether they can restock goods or meet supplier obligations. Access to short-term credit could provide some flexibility when business expenses arise before enough money has been received.
Fuliza Ya Pochi builds on Safaricom’s existing Pochi La Biashara service, which enables informal business owners to receive and separate business payments from their personal M-PESA funds. Pochi La Biashara serves traders such as food vendors, kiosk operators and other small-scale merchants.
Under the new facility, credit limits will depend on a merchant’s business activity. Repayments will be automatically deducted from future payments received, linking the credit facility to the flow of money through the business wallet.
The product could help traders maintain stock and continue serving customers during temporary cash shortages. However, the amount of credit available will vary, and merchants will need to manage borrowing carefully to ensure repayments do not leave them short of money for other expenses.
The launch also reflects the growing role of mobile financial services in supporting Kenya’s small businesses. Digital credit can offer convenient access to working capital, although its value depends on transparent terms and borrowers’ ability to repay.
As Fuliza Ya Pochi rolls out to eligible merchants, its uptake will depend on the credit limits offered, the cost of borrowing and whether traders can use the facility to manage business cash flow sustainably.Here is a link as it explains how the service works. https://www.google.com/search?q=url%3D%22https%3A%2F%2Fwww.safaricom.co.ke%2Fmedia-center-landing%2Ffrequently-asked-questions%2Fpochi-la-biashara%3Ftmpl%3Dcomponent%22+title%3D%22Safaricom%E2%80%99s+Pochi+La+Biashara+information%22%2F%3E&sourceid=chrome&ie=UTF-8&source=chrome.ctxt
