Safaricom has launched a new overdraft facility targeting Pochi La Biashara merchants.

Dubbed Fuliza Ya Pochi, the service allows small businesses to complete transactions even when they lack sufficient funds in their M-PESA wallets.

The facility allows eligible merchants to make supplier payments, purchase goods through Buy Goods, send money and settle utility bills despite having insufficient funds in their Pochi La Biashara wallets.

Safaricom Group chief executive Peter Ndegwa said the service aims to address the financial challenges facing small businesses, particularly those that experience temporary cash shortages while managing their daily operations.

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

“Fuliza Ya Pochi helps merchants overcome these short-term challenges while continuing to build their businesses. As merchants transact and grow on M-PESA, they create a pathway to greater financial opportunities,” he added.

How merchants can access the facility

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

Upon enrolment, qualifying merchants will be assigned overdraft limits based on their business transaction activity. Amounts owed will be recovered automatically from subsequent payments received in their Pochi La Biashara wallets.

Pochi La Biashara enables entrepreneurs and informal businesses to receive customer payments while keeping business funds separate from personal money.

The platform currently serves more than two million micro-merchants, providing a digital payment channel for their daily operations.

Launched in 2019, Fuliza allows M-PESA customers to complete transactions when their wallets have insufficient funds by accessing additional credit.

Safaricom later extended the overdraft proposition to businesses through Fuliza ya Biashara, which serves qualifying merchants using Lipa na M-PESA.

Fuliza Ya Pochi marks a further expansion of the service to businesses operating through Pochi La Biashara, broadening access to short-term credit within Safaricom’s mobile money ecosystem.

The launch also follows recent measures by Safaricom to lower transaction costs for Pochi La Biashara users.

The company introduced zero-rated charges on customer payments of up to Sh200 and cut charges by 50 per cent on payments above Sh200, subject to a maximum fee of Sh50.

The pricing measures are set to run for three months, offering temporary relief to merchants as they receive payments from customers.