NAIROBI, Kenya, May 29 – Customers using the Fuliza platform increased by 16.8 million in the year ended December, a new report shows, highlighting preference for the short loan facilities among Kenyans.
The lender said that usage went up to 33.9 million from 17.1 million in a similar period in 2021.
Customers using Fuliza, which is the biggest credit service for NCBA, are charged a one percent fee of the amount disbursed and an extra Sh36 every day when the loan is not repaid.
M-Shwari was first unveiled in 2012 by Safaricom and NCBA. It later partnered with KCB to roll out Fuliza seven years later.
Borrowers rise came at a time when Safaricom, together with KCB Group and NCBA, reduced fees charged on the platform.
On October 20, 2022, daily fees on the overdraft facility were Sh1,000 and Sh1500, reduced from Sh20 to Sh18.
In the three-month period ending March this year, NCBA’s profit after tax grew by 49 percent to Sh5.1 billion, attributed to higher operating income.
While operating income increased 18 percent to Sh15.5 billion, credit loss provision declined 23 percent to Sh2 billion in the period.
Improved performance came on the back of tough macroeconomic challenges that saw the Central Bank of Kenya (CBK) increase lending rates to ease inflation.
