Imagine you’re in a situation where you need to send Ksh2,000 to a friend, but your M-PESA account only has Ksh1,000. Traditionally, this would mean the transaction would fail due to insufficient funds. However, with Fuliza, Safaricom’s innovative overdraft service, you can complete that transaction seamlessly, even when your account balance falls short. If you’ve ever found yourself in this predicament, read on to learn how to make the most of Fuliza M-PESA.
What is Fuliza M-PESA?
Launched by Safaricom, Fuliza is Kenya’s first mobile overdraft service that enables users to complete transactions even when their M-PESA account has insufficient funds. The name “Fuliza,” which means “continuously flowing” in Swahili, reflects the service’s primary goal of ensuring seamless transactions. It was born out of insightful data analysis by Safaricom’s Financial Services and Big Data teams, who identified a significant number of cancelled transactions due to insufficient funds.
This led to the development of Fuliza, designed to address the needs of over 25 million M-PESA users. Although some may refer to Fuliza as a loan, it’s essential to understand that it operates as an overdraft service. This means you can only use the funds for transactions like sending money or making payments but not for withdrawals.
How Fuliza Works
Activation Process
Fuliza is not automatically enabled on all M-PESA accounts, which is a protective measure to prevent unintended overdraft usage. Here’s how you can opt in:
- Dial: *234# on your mobile phone.
- Select: Fuliza M-PESA from the options.
- Review: Read the Terms and Conditions, then agree to activate the service.
Checking Your Limits
To check your Fuliza limit, balance, or to opt out, simply dial *234# again and follow the prompts.
How to Use Fuliza
Fuliza comes into play in various situations where your M-PESA balance is insufficient. Here are some common scenarios:
- Paying Bills: Use Lipa na M-PESA to pay utility bills, such as Kenya Power and water bills.
- Merchant Payments: Complete transactions at various outlets, including supermarkets and transport services.
- Sending Money: Transfer funds to other M-PESA users without the hassle of needing the full amount upfront.
Repaying Fuliza
Repaying the amount used through Fuliza is straightforward. Once you deposit money into your M-PESA account, the overdraft amount will be automatically deducted, making repayment seamless. This automatic deduction sets Fuliza apart from services like M-Shwari, where users must manually initiate loan repayments.
Fuliza Charges
Before you start using Fuliza, it’s crucial to be aware of the associated fees:
- Access Fee: A one-time fee of 1% is charged when you activate Fuliza.
- Daily Maintenance Fee: Depending on the amount overdrawn, you may incur daily charges as follows:
| Amount Overdrawn | Daily Charge |
|---|---|
| Ksh 0 – Ksh 100 | Ksh 2 |
| Ksh 101 – Ksh 500 | Ksh 5 |
| Ksh 501 – Ksh 1,000 | Ksh 10 |
| Ksh 1,001 – Ksh 1,500 | Ksh 20 |
| Ksh 1,501 – Ksh 2,500 | Ksh 25 |
| Ksh 2,501 – Ksh 70,000 | Ksh 30 |
For instance, if you overdraw Ksh 200, you will incur a Ksh 2 one-off fee and a daily charge until you repay the overdraft.
Fuliza Limits
Your Fuliza limit varies based on your usage patterns and will be reviewed every three months. Safaricom encourages users to continue engaging with M-PESA services and repaying Fuliza promptly to enhance their limits. You can utilize Fuliza multiple times as long as you remain within your allocated limit.
Key Considerations When Using Fuliza
While Fuliza offers convenience, there are essential aspects to keep in mind:
- ‘Fuliza-ing’ Limitations: If your M-PESA account is overdrawn, you cannot receive funds until the outstanding balance is cleared. Any incoming deposits will be automatically applied to your Fuliza repayment.
- Transaction Errors: If you accidentally send money to an incorrect number that is overdrawn, recovering those funds can be challenging. The reversal process applies only if the recipient has not used the funds, which can lead to potential losses.
- Multiple Accounts: Each M-PESA line operates independently regarding Fuliza. Each mobile number will qualify for its own overdraft limit.
- Opting Out: You can choose to opt out of Fuliza through the USSD option or the MySafaricom App, provided you do not have any outstanding overdraft amounts.
The Role of Credit Reference Bureau (CRB)
Fuliza is linked with the Credit Reference Bureau (CRB), which monitors your credit rating. Active Fuliza users will be listed as follows:
- Positive Listing: For customers with no overdue amounts.
- Negative Listing: For those with outstanding amounts, which can impact your ability to secure loans or employment.
Customer Rights Regarding CRB Listings
- Right to Information: Customers can access and dispute any inaccurate information submitted to the CRB.
- Free Credit Report: You are entitled to one free credit report per year and within 30 days of receiving adverse action notices.
- Dispute Resolution: Customers can request corrections for inaccuracies in their credit reports.
Fuliza M-PESA has revolutionized how Kenyans manage their mobile transactions, providing a vital financial safety net for millions. By understanding how Fuliza works, its associated costs, and the implications of its use, you can navigate this service effectively. Whether you’re paying bills, sending money, or managing expenses, Fuliza ensures your transactions keep flowing, even when your account balance doesn’t. For any queries or assistance, visit your nearest Safaricom retail outlet or contact their customer service at 100 or 200.
