On 5th July, Techspace Africa received a media invite for the launch of a Faraja Credit, a 0% interest product that would allow users to buy now and pay later (BNPL) in different stores both online and offline, the event was supposed to take place on the 6th of July, however, on the D-day, it was canceled.
We have now learned that it was the Central Bank of Kenya (CBK) that blocked the launch of the Safaricom-backed zero-interest credit service.
According to our sources, CBK gave clear directions that the product should not be launched until new regulatory issues were solved, put under review, and approved.
According to Business Daily, CBK asked the promoters of the interest-free product owned by EDOMx Ltd to stop its release just hours before the planned unveiling.
EDOMx Ltd is a Kenya-based financial technology firm, with Safaricom and Equity Bank listed as its partners.
In now pulled down terms and conditions, Safaricom had said the product would allow its customers to shop for goods of up to Sh100,000 and pay later.
Safaricom maintains the product will be unveiled in due time. “Due to circumstances beyond our control, we had to postpone the event to another date which will be communicated to you soon.”