The popularity of the Fuliza platform among Kenyans has witnessed a significant surge in recent times, as revealed in a new report. Over the course of one year, the number of customers utilizing Fuliza’s short loan facilities increased by a staggering 16.8 million, reaching a total of 33.9 million users by the end of December. This surge in usage demonstrates a clear preference for the convenience and accessibility offered by Fuliza. In this article, we will delve into the reasons behind this remarkable growth, exploring the factors contributing to the rise in Fuliza usage and the positive implications it carries for both individuals and the Kenyan economy.

The Fuliza platform, a collaboration between Safaricom and NCBA Bank, has gained significant traction in Kenya as a mobile overdraft service. It offers customers the opportunity to borrow up to Ksh. 1,000 without undergoing a credit check. This feature, coupled with its user-friendly interface, has made Fuliza an appealing choice for many Kenyans seeking short-term financial solutions.

According to the report, the number of customers using Fuliza skyrocketed from 17.1 million in the year-end of 2021 to an impressive 33.9 million by the end of December. This signifies a remarkable growth of 16.8 million users, indicating the rising popularity of Fuliza’s short loan facilities among Kenyans.

Kenya has experienced a steady rise in the cost of living in recent years, placing a strain on households’ budgets. Consequently, there has been an increased demand for short-term loans, such as Fuliza, to assist individuals in covering unexpected expenses that may arise. Fuliza provides a viable solution to bridge the financial gap during challenging times.

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Moreover, the popularity of mobile money has soared in Kenya, with over 80% of the population utilizing this convenient payment method. This widespread adoption of mobile money has made Fuliza easily accessible to a large portion of the population, even those without a traditional bank account.

The surge in Fuliza usage has been a boon for NCBA Bank, leading to substantial growth in its profit after tax. In the three-month period ending March 2023, NCBA Bank recorded a remarkable 49 percent increase in profit, amounting to Ksh. 5.1 billion. This growth can be attributed to higher operating income, which witnessed an 18 percent increase, reaching Ksh. 15.5 billion. Additionally, credit loss provision declined by 23 percent to Ksh. 2 billion during the same period. Despite the challenging macroeconomic landscape and the Central Bank of Kenya’s decision to increase lending rates, NCBA Bank has managed to thrive.

While Fuliza offers a convenient and accessible short-term loan facility, it is crucial to exercise responsible borrowing habits. Fuliza should not be seen as a long-term solution for financial problems. If individuals find themselves struggling to repay their Fuliza loans, it is advisable to reach out to NCBA Bank or consult a financial advisor for guidance and support.

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Nigel Jr.
As a tech enthusiast and expert, Nigel Jr. is dedicated to providing in-depth and insightful content on all things technology. With a background in online journalism, product reviewing, and tech creation, Nigel has become a trusted source for all things tech.

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