Safaricom has extended its Fuliza overdraft service to Pochi La Biashara merchants, opening access to short-term credit for more than one million qualifying micro-businesses as the telecommunications company deepens its push into digital financial services.

The new product, Fuliza Ya Pochi, will allow eligible merchants to complete payments even when their business wallets have insufficient funds, providing an additional financing option for entrepreneurs facing daily cash-flow constraints.

Merchants will be able to use the overdraft to pay suppliers, make Lipa na M-PESA Buy Goods payments, send money and settle utility bills.

Credit limits will be determined by individual business activity, while repayments will be automatically deducted from subsequent payments received into their Pochi wallets.

“Across Kenya, thousands of micro-businesses face daily cash flow gaps that can mean missed sales, delayed stock purchases, or postponed supplier payments.

“Fuliza Ya Pochi helps merchants overcome these short-term challenges while continuing to build their businesses,” said Safaricom CEO Peter Ndegwa.

The service will be available to merchants who have actively used Pochi La Biashara for more than six months. Customers can access it through the Pochi Mini App on My OneApp or by dialling *334#.

Safaricom says Pochi La Biashara currently serves more than two million micro-merchants, although access to the new overdraft facility will be limited to qualifying users.

The launch expands the company’s existing credit portfolio, which includes the original Fuliza service introduced in 2019 and Fuliza ya Biashara, an overdraft facility for qualifying Lipa na M-PESA merchants.

The telco says it is targeting informal businesses that rely on mobile money to manage daily transactions but may experience temporary shortages of working capital.

However, the facility introduces another borrowing option for small businesses, making the cost of credit and repayment terms important considerations for merchants seeking to use it to finance operations.

Safaricom has not specified the overdraft limits or detailed borrowing charges in its launch announcement.