Safaricom has launched a new overdraft facility for qualifying Pochi La Biashara merchants, extending its mobile money credit business to small traders seeking short-term financing to manage inventory purchases, supplier payments and daily operating expenses.
The product, Fuliza Ya Pochi, will allow eligible merchants to complete transactions even when their available balances are insufficient. Safaricom said more than one million merchants qualify for the facility, which builds on the company’s existing M-PESA lending services.
The overdraft can be used to pay suppliers, make Buy Goods purchases, send money and settle utility bills. Credit limits will be assigned according to business activity, while repayments will be automatically deducted from future payments received into merchants’ Pochi La Biashara wallets.
Merchants must have actively used Pochi La Biashara for more than six months to qualify. They can access the service through the Pochi Mini App on My OneApp or by dialling *334#.
“Across Kenya, thousands of micro-businesses face daily cash flow gaps that can mean missed sales, delayed stock purchases, or postponed supplier payments,” Safaricom Group CEO Peter Ndegwa said.
The launch targets a segment of Kenya’s informal economy where businesses often rely on daily revenue to replenish stock and meet financial obligations. For traders operating with limited working capital, a delay in customer payments or an unexpected expense can disrupt operations.
Pochi La Biashara currently serves more than two million micro-merchants, according to Safaricom. The service allows business owners to receive customer payments while keeping business and personal funds separate.
Fuliza Ya Pochi expands Safaricom’s existing credit portfolio. Launched in 2019, Fuliza allows M-PESA customers to complete transactions when they have insufficient balances. The company later introduced Fuliza ya Biashara, extending overdraft services to qualifying Lipa na M-PESA merchants.
The new facility brings Pochi La Biashara users into that credit ecosystem, allowing Safaricom to extend transaction-linked lending to a broader group of small businesses.
The launch also follows temporary reductions in Pochi La Biashara transaction charges. Safaricom has waived charges on customer payments of up to KES 200 and reduced fees by 50% on payments above that amount, subject to a maximum charge of KES 50, for three months.
The combination of lower transaction costs and access to overdrafts could help merchants manage short-term cash flow pressures. However, the impact will depend on the credit limits offered, the cost of borrowing and merchants’ ability to repay advances from subsequent sales.
For Safaricom, the product adds another layer to M-PESA’s role in Kenya’s small-business economy, combining payments infrastructure with access to credit for merchants whose financial needs are closely tied to daily transactions.
