President Ruto has supported the new discounted tariff of up to 40 percent on Fuliza by NCBA, Safaricom, and KCB Group.
President Ruto remarked that the conversation is entirely about Hustlers hence a solemn measure to come up with a solution or means of solving this high cost of loans they receive from lenders.
“It’s important that 4 to 5 million Kenyans will be out of blacklist listings of CRB that has made them unable to receive loans hence going for scrupulous lenders who overcharge them in terms of paying back,” said President Ruto.
The President stated that the government of Kenya wants to work on credit, especially for the Micro Small, and Medium Enterprises breaking the constraints of their inability to receive better loans with better interests to scale up growth.
“Can the mama mboga get loans at less than 10% interest rates per day that is can we have a product that enables the mama mboga to credit at a single-digit rate? We can work together to mitigate some of the risks that come from lending to our small-scale business persons,” remarked President Ruto.
The move he refers to as a win-win arrangement that will enable fintech to benefit, SMEs benefit, Saccos, Chamas can access loans at single-digit rates as that is the future.
He indicated that borrowing works best when one has savings as it assists to secure a future and builds a savings culture that enables an affordable loan for the benefit of society.
“The engagement with CRBs is to change the credit mechanism of listing so that instead of black listing they can be rated in terms of when it was borrowed and the payback dating so as to cover the gap of exclusion from formal borrowing,” added the president.
In 2019, Safaricom, NCBA, and KCB came together to introduce Fuliza as an overdraft solution that was aimed at assisting an average Kenyan to meet emergency needs.
Over 28 million of Kenyans have engaged in the Fuliza program as evident from the millions of returns in the data.
