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Fuliza Ya Biashara: Everything You Need To Know

This overdraft facility allows extension of credit to business owners with M-Pesa tills

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On 4th May, 2023, telecommunications giant Safaricom PLC partnered with KCB Bank Kenya to launch Fuliza ya Biashara, an overdraft facility that allows extension of credit to business owners with M-Pesa Business tills when their accounts reach zero or have insufficient funds to complete a transaction.

The rollout of Fuliza ya Biashara aims to scale up small business activities by offering entrepreneurs more fiscal headroom when in a fix and need to make urgent transactions to their clients or respond to various business demands.

According to Safaricom CEO, Mr Peter Ndegwa, more than half a million businesses that have incorporated till services in their enterprises can use Fuliza ya Biashara to access short-term credit of up to Ksh400,000 to support their business requirements.

“We launched Lipa Na M-Pesa as a way for businesses to conveniently receive cashless payments through their mobile phones whenever they are,” Mr Ndegwa said. “With more than 538,000 businesses accepting payments through the service, our strategy is to; now go beyond collecting payments by providing business owners with tools to manage and grow their businesses.”

How to use Fuliza ya Biashara

Fuliza ya Biashara is available for all business owners with active M-Pesa till numbers, which are older than six months from the date of registration. Unfortunately, Pochi La Biashara users cannot tap into this overdraft facility to cover their financial shortfalls.

Here is how M-Pesa business service users can opt-in to Fuliza ya Biashara:

  1. Dial *234# from the registered Safaricom Mpesa Till number
  2. Go to ‘Mpesa Business Till’
  3. Select ‘Business Loans’
  4. Choose ‘Fuliza ya Biashara’
  5. Accept the terms and conditions of using the facility
  6. Enter the user ID
  7. Enter the user PIN

After successfully registering for Fuliza ya Biashara, you will receive a text message indicating your assigned limit. Fuliza ya Biashara limits can be used to complete Paybill and Buy Goods and Services transactions on Lipa na M-Pesa category and can be withdrawn at M-Pesa agent outlets or to a nominated number.

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Fuliza ya Biashara overdraw service is automatic, and subscribers receive pop-up messages to complete transactions on insufficient funds.

What is Fuliza ya Biashara limit?

With Fuliza ya Biashara, you can take out more money than you have in your account and solve your day-to-day cashflow issues on the Lipa na Mpesa transacting till. The minimum Fuliza ya Biashara overdraft loan is Ksh1,000, while the maximum is Ksh400,000.

These preset credit limits are assigned by evaluating factors like past transaction history of business owners and individual frequency of use of other Safaricom and M-Pesa services. The minimum transaction limit is Ksh1 up to the allocated limit, and Fuliza for business users can borrow as many times as long as they are within their credit limits.

Fuliza ya Biashara customers have 30 days to repay the loan but are advised to pay back as soon as possible to increase their credit viability and as well as their limits. After repayment, one accesses a new overdraft, including the repaid amount.

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Defaulters of Fuliza for business overdraft facility risk being blacklisted on Credit Reference Bureaus (CRBs) aside from being barred from using the service. “A business owner that does not pay their Fuliza ya Biashara on time will not be able to access the overdraft service, their limit will be reduced, and eventually they will be listed on CRB after 91 days of their due date,” according to Fuliza ya Biashara terms of use.

Note that deductions to repay your Fuliza ya Biashara loan is after 30 minutes of every hour from the money sent to the till.

What are Fuliza ya Biashara fees?

Borrowing a Fuliza ya Biashara loan attracts a 2% once-off fee and daily administrative fees, which are calculated based on the loaned amount in specified tiers after the lapse of a 24-hour interest-free period.

The table below shows Fuliza ya Biashara interest rates. Have in mind that the 2% access fee is charged on every disbursement made.

Fuliza ya Biashara loan amount Daily maintenance fees
Ksh1 – Ksh999 0 (Free)
Ksh1,000 – Ksh2,499 Ksh12
Ksh2,500 – Ksh5,000 Ksh30
Ksh5,001 – Ksh15,000 Ksh50
Ksh15,001 – Ksh35,000 Ksh150
Ksh35,001 – Ksh70,000 Ksh200
Ksh70,001 – Ksh100,000 Ksh250
Ksh100,001 – Ksh400,000 Ksh250


M-Pesa business owners who do not wish to continue using Fuliza ya Biashara services can opt-out by dialing *234#, choosing M-Pesa Business Till, logging their store numbers, and selecting the Business Loans option for Fuliza ya Biashara and following the prompts.

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JUSTUS KIPRONOhttp://www.businesstoday.co.ke
Justus Kiprono is a freelance journalist based in Nairobi, Kenya. He tracks Capital Markets and economic trends, infrastructure reform, government spending, and the financial impacts of state decision-making nationwide. You can reach him: [email protected]
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