More than one million small-scale traders using Safaricom’s Pochi La Biashara platform could access short-term credit to restock their businesses, pay suppliers and keep daily operations running under a new overdraft facility launched by the telecommunications firm.

The new service, dubbed Fuliza Ya Pochi, allows eligible merchants to complete business transactions even when their Pochi wallets have insufficient funds, helping them bridge temporary cash-flow gaps that can disrupt sales and delay restocking.

Traders can use the facility to pay suppliers, make Buy Goods purchases, send money and settle utility bills, allowing them to meet business expenses as they await payments from customers.

Safaricom Group Chief Executive Officer, Peter Ndegwa, said the facility would help micro-merchants address financial challenges that often lead to missed sales opportunities, delayed stock purchases and postponed supplier payments.

Speaking in Thika during the launch, the CEO said traders who use M-PESA to transact and grow their businesses could unlock additional financial opportunities through the new service.

“Across Kenya, thousands of micro business enterprises face daily cash flow gaps that lead to missed sales, postponed supplier payments or delayed stock purchases. Fuliza la Pochi helps businesses overcome these short-term challenges while continuing to build their businesses. As merchants, transact and grow on Mpesa, they create a pathway for greater opportunities,” said Ndegwa.

To qualify, merchants must have actively used Pochi La Biashara for more than six months. They can access the facility through the Pochi Mini App on My OneApp or by dialling *334#.

Each eligible trader will receive a credit limit based on their business activity, with repayments automatically deducted from subsequent payments received in their Pochi wallets.

According to the company, Pochi La Biashara serves more than two million micro-merchants, providing a platform for receiving customer payments while separating business funds from personal money.

The launch expands the company’s credit offerings, following the introduction of Fuliza in 2019 and its extension to eligible businesses through Fuliza ya Biashara.

It also follows temporary relief measures introduced for Pochi La Biashara users, including zero charges on customer payments of up to Sh200 and a 50 per cent reduction in charges on payments above Sh200, capped at Sh50, for three months.

by Muoki Charles