• Latest
  • All
  • How To
The Unforeseen Consequences of Safaricom’s Overdraft Facility Fuliza

The Unforeseen Consequences of Safaricom’s Overdraft Facility Fuliza

February 26, 2019
kenya-parliament

Parliament Invites Public Feedback on Virtual Asset Bill 2025

May 30, 2025
ConnectedAfrica2025(Day4)-meta-foondamate

Connected Africa 2025 Day 4: FoondaMate and Meta Team Up to Bring AI to Classrooms

May 29, 2025
google-veo-3

Actors and Film Crews Are Worried About Veo 3 Taking Their Jobs

May 29, 2025
iOS 26

Apple Plans Big Rename for iOS and macOS at WWDC 2025

May 29, 2025
DHgate Tablet Cases deals
University student fined for defamatory Facebook posts

University Student Fined KES 7.5 Million for Defamatory Facebook Posts

May 29, 2025
AI Africa policies database

New Platform Brings All African AI Policies Under One Database

May 28, 2025
POATE 2025

Kenya’s Tourism Sector Grows as Travel Gets Easier Across East Africa

May 28, 2025
sodium-ion battery

Researchers Develop Sodium-Ion Battery That Charges to 80% in 6 Minutes

May 27, 2025
TV Gambling Ads

Regulator Fines Stations Using Religious Shows to Push Gambling

May 27, 2025
Connected Africa Summit 2025

Connected Africa 2025 Day 2: Focus on Digital Inclusion & Cybersecurity

May 27, 2025
whatsapp chatbots

iPad Users May Finally Get a Native WhatsApp App

May 28, 2025
Connected Africa Summit

Connected Africa Summit Calls for Unified Tech Vision

May 28, 2025
Techweez | Tech News, Reviews, Deals, Tips and How To
  • News
  • Entertainment
  • Reviews
  • Features
  • Editorial
No Result
View All Result
Techweez | Tech News, Reviews, Deals, Tips and How To
  • News
  • Entertainment
  • Reviews
  • Features
  • Editorial
No Result
View All Result
Techweez | Tech News, Reviews, Deals, Tips and How To
No Result
View All Result

The Unforeseen Consequences of Safaricom’s Overdraft Facility Fuliza

Kenn Abuya by Kenn Abuya
February 26, 2019
in Editorial
Reading Time: 3 mins read
267
3

A couple of weeks ago, telco Safaricom released an overdraft facility referred to as Fuliza. Owing to the carrier’s vast reach and robust marketing power, the product has been adopted by many (we do not have the number yet, but it is likely current users are in terms of millions as it attracted 1 million people on its first week), and has in the process allowed M-PESA users access services (PayBill, Send Money and Buy Goods) in cases where they run short of e-money. To date, the product, which Safaricom insists is not a loan facility (well, users cannot overdraw the funds to their wallets, unless they send the cash to another party and make an exchange), commands billions of shillings in disbursements.

Fuliza’s bells and whistles have unfortunately been plagued by unforeseen consequences for folks who regularly use M-PESA services (doesn’t everybody use the mobile money product on the daily though?), a development that has seen users take drastic measures to ensure that any funds that go through their M-PESA wallets are not used to regularize the facility. Would have the measures been avoided by using other services, like taking a loan from a friend? Sure. But at what cost owing to the fact that people only use Fuliza if other options are not viable? Well, let’s dig in.

M-PESA recipients are issuing warnings before receiving funds

You and I, or a person close to us has at one time warned that their M-PESA wallet has Fuliza, and cannot receive funds intended for a given task/project/payment. Let’s be open about this because the frequency at which these warnings are given is growing day by day, and does not appear to slow down as more people learn about Fuliza, and our inherent addiction to similar services such as online loans. The outcome? Well, the culprits are using their neighbour’s devices to receive funds, and where the person next to you has a Fuliza ‘loan’…

People are purchasing new SIM cards

This is may not be as frequent, but I know a couple of folks who have two or more SIM cards or have purchased another one to avoid the Fuliza regularization net. The purchase is obviously necessitated by the need to avoid refunding their Fuliza expenditure due to other more pressing matters. Understandably, these hide and seek games are unavoidable because unlike loan services, any money sent/deposited in your overdrawn wallet will regularize Fuliza (if it is less than the amount overdrawn) or pay it fully plus the interest. This was purposely done to qualify Fuliza ‘a not a loan’ product; loans are flexible as you can pay them at the time agreed upon by the lender, save online microloans offered by the likes of Equity Bank that are serviced as soon as you deposit funds in your account (without you authorizing the payments).

People are wiping dust off their secondary mobile money services (T-Kash, Airtel Money, PesaLink, Equitel)

Maybe you have not redirected your mobile money services to the likes of T-Kash or Equitel or the Airtel Money, but I know I have because at one time, yours truly was not ready to pay what he owed to Fuliza for obvious reasons. T-Kash, for instance, coexists with M-PESA; the products charge the same fees for multiplatform transactions, which comes in handy for recipients who are wary of the associated transaction fees.

Can this development grow the revenues of other mobile money products? Probably not, but it the limitations of Fuliza has forced some people to explore other solutions. We are not sure if the revenues Safaricom makes from Fuliza surpass the ‘insignificant’ exodus to competing mobile money services to make the telco brush off the introduction of a structured payment model.

Funds wrongfully sent to overdrawn accounts will not be reversed

It is worth noting that Fuliza is regularized as soon as an M-PESA account is replenished with funds. This implies that should you send money to a wrong number (that has been overdrawn), then you cannot get those funds back unless the recipient clears the facility and hopefully refunds the cash wrongfully sent to them. This, however, does not solve the inconvenience therein, and in some cases, recipients can disappear into thin air and there is nothing you can do about it unless you involve the Police.

Luckily, the existence of Hakikisha should massively reduce chances of sending money to an unintended recipient, so there is that.

Bottom line

No one is in a position to advise you against using Fuliza because in most cases, it comes in handy in addressing emergencies. However, we need to be wary of its unforeseen consequences, which can limit your ability to use mobile money services. Of course, if you can furnish the overdraft in a timely manner, then go ahead and help yourself out. Contrastingly, you may need to think twice before Fuliza-ing because non-payment comes at a much bigger cost.

Tags: FulizaSafaricom
SendShare148Tweet93
Kenn Abuya

Kenn Abuya

Kenn Abuya is a friend of technology, with bias in enterprise and mobile tech. Share your thoughts, tips and hate mail at [email protected]

Related Posts

Kenya Safaricom share sale

Kenya Plans Mega Sale of Safaricom Shares to Raise Over a Billion Dollars

May 26, 2025
Safaricom, Airtel, Telkom lawsuit

Safaricom, Airtel, Telkom and CA Sued in Data Rollover Lawsuit

May 28, 2025
Safaricom launches revamped business loans

Safaricom Unveils Business Credit via M-PESA and Pochi Wallets

May 21, 2025
Safaricom Quickmart partnership

Safaricom 4G and 5G Routers Now Available at Quickmart Stores

May 17, 2025
Safaricom 5G for Business

How Safaricom 5G is Revolutionizing Enterprise Connectivity

May 17, 2025
Safaricom-IXAfrica-Centres-1

Safaricom Partners with iXAfrica to Build Region’s First AI-Ready Data Centre

May 17, 2025

Latest

kenya-parliament

Parliament Invites Public Feedback on Virtual Asset Bill 2025

May 30, 2025
ConnectedAfrica2025(Day4)-meta-foondamate

Connected Africa 2025 Day 4: FoondaMate and Meta Team Up to Bring AI to Classrooms

May 29, 2025
google-veo-3

Actors and Film Crews Are Worried About Veo 3 Taking Their Jobs

May 29, 2025
iOS 26

Apple Plans Big Rename for iOS and macOS at WWDC 2025

May 29, 2025
University student fined for defamatory Facebook posts

University Student Fined KES 7.5 Million for Defamatory Facebook Posts

May 29, 2025
AI Africa policies database

New Platform Brings All African AI Policies Under One Database

May 28, 2025

Best devices

budget smartwatches 2025

Best Budget Smartwatches To Buy in Kenya 2025

February 13, 2025

Best Infinix Smartphones To Buy in Kenya 2024

February 13, 2025

Best Laptops for Battery Life in 2024

August 21, 2024

Best “Battery Warrior” Smartphones To Buy in 2024

August 22, 2024

Parliament Invites Public Feedback on Virtual Asset Bill 2025

May 30, 2025

Connected Africa 2025 Day 4: FoondaMate and Meta Team Up to Bring AI to Classrooms

May 29, 2025

Techweez is a fast growing influential source of technology news, reviews and analysis by leading tech geeks in the industry.

Follow Us

Editorials

Actors and Film Crews Are Worried About Veo 3 Taking Their Jobs

Samsung QLED TVs Now Officially Certified for Real Quantum Dot Technology

Trump’s Tariffs Will Be the End of Affordable Tech

5 Ways to Prep Your Tech for Resale

The Weaponization of PDFs: How Cybercriminals Are Exploiting a Trusted Format

Introducing A Brainbox Quiz: Techweez’s Monthly Trivia Night!

More News

Kenya’s Tourism Sector Grows as Travel Gets Easier Across East Africa

Researchers Develop Sodium-Ion Battery That Charges to 80% in 6 Minutes

Regulator Fines Stations Using Religious Shows to Push Gambling

Connected Africa 2025 Day 2: Focus on Digital Inclusion & Cybersecurity

iPad Users May Finally Get a Native WhatsApp App

Connected Africa Summit Calls for Unified Tech Vision

  • Terms Of Use
  • Techweez Brand
  • Privacy & Policy
  • Contact Us

© 2024 Techweez - Palahala Media Group may earn a commission when you buy through links on our sites.
A Palahala Media Group Brand. All rights reserved.
.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Techweez | Tech News, Reviews, Deals, Tips and How To
Crunchy Cookies 🍪 Ahead!

Hey there! Just a heads-up: we're big fans of cookies - both the digital and edible kind! 🍪 We use our cookies and some from third parties to ensure your browsing experience on our site is smooth sailing and secure.

 

But wait, there's more! We also use cookies to gather stats and insights on how you navigate our site. It's like getting a behind-the-scenes peek at your digital adventures!

 

Don't worry, you're in control. You can adjust your cookie settings anytime to suit your preferences. Feeling curious? Dive into our Privacy Policy for all the juicy details. Happy browsing! 🚀

Functional Always active
Listen, this legal stuff is about as exciting as watching paint dry. But it basically says we only use your stuff for what you asked us to do, and nobody else gets to peek!
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
It's those sneaky cookie crumbs websites leave behind to count visitors, like counting ants at a picnic! Totally harmless, just for fun facts. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
Hey there! Just letting you know we use some fancy gizmos to remember your preferences. This way, we can show you ads that are, well, not completely bananas.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
Make cookies
{title} {title} {title}
Techweez | Tech News, Reviews, Deals, Tips and How To
Crunchy Cookies 🍪 Ahead!
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
Listen, this legal stuff is about as exciting as watching paint dry. But it basically says we only use your stuff for what you asked us to do, and nobody else gets to peek!
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
It's those sneaky cookie crumbs websites leave behind to count visitors, like counting ants at a picnic! Totally harmless, just for fun facts. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
Hey there! Just letting you know we use some fancy gizmos to remember your preferences. This way, we can show you ads that are, well, not completely bananas.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
Make cookies
{title} {title} {title}
No Result
View All Result
  • News
  • Reviews
  • Features
  • Editorial
  • Automotive
  • Entertainment

© 2024 Techweez - Palahala Media Group may earn a commission when you buy through links on our sites.
A Palahala Media Group Brand. All rights reserved.
.