Faraja: Safaricom, EDOMx Roll Out Interest-Free Lipa Na M-Pesa Loans Of Up To KSh 100k

• Safaricom partnered with EDOMx to launch interest-free loans for Lipa na M-Pesa customers
• The credit facility dubbed Faraja allows businesses to accept zero deposits from over 32 million M-Pesa customers
• Faraja loan gives zero interest for Lipa na M-Pesa customers for up to 30 days of repayment period

Safaricom Lipa na M-Pesa customers can now enjoy interest-free loans of up to KSh 100,000.

The telecommunication firm partnered with EDOMx to launch the Faraja credit facility, targeting more than 32 million M-Pesa customers.

Safaricom Faraja loan limit

The credit facility allows one to purchase goods and services on credit from businesses offering Lipa Na M-Pesa services.

Customers utilising the service will make purchases ranging from KSh 20 to KSh 100,000 at zero interest fee and complete the payment within 30 days.

Safaricom Chief Executive Officer (CEO) Peter Ndegwa noted that the Faraja loan is a sales booster for many businesses.

This is achieved by enabling customers to make a purchase at the point of need and then make payments later.

“We continue to innovate M-PESA to empower business owners with different tools and solutions to run their businesses better and to faster grow their firms.

Many businesses lose out on sales when a customer would like to make a purchase but lacks money at that point. We are glad to partner with EDOMx to offer Faraja empowering any business to grow their sales,” said Ndegwa in a press statement released on Thursday, July 27.

EDOMx CEO Julian Kyula welcomed the partnership, saying Faraja launch will encourage creativity in the digital financial sector in Kenya and globally.

Kyula revealed that the company intends to offer more through the Faraja credit facility that meets varied customers' needs

"Undoubtedly, the global digital financial frontier is shifting, and we believe we have much to offer the world from our Kenyan digital innovation culture. We are just getting started – much more in the pipeline enables everyone in the Faraja Community to enjoy what we have to offer," said Kyula.

How to use Safaricom Faraja facility

Safaricom customers can access the service at businesses which offer Faraja by dialling *799# to opt-in or make a payment.

You can as well use the Faraja mini-app on the M-PESA Super App, to buy multiple items simultaneously, based on their credit limits.

Businesses on Lipa Na M-PESA can opt into Faraja through the Faraja portal at farajacredit.com or by contacting EDOMx.

Where to shop with Safaricom Faraja credit facility

Faraja is currently available across all Naivas Supermarket outlets, Goodlife pharmacies, City Walk, among other merchants.

More than 606,000 Lipa na M-Pesa businesses can utilise Faraja and receive payment in full for a product or service immediately after a customer makes a payment through the service.

The businesses will be required to pay a negotiated facility fee that enables them to receive payments immediately after a customer makes a purchase on Faraja.

Fuliza ya Biashara

The telecommunication firm has been tailoring its products to meet the growing customer needs and expectations.

In May 2023, Safaricom launched Fuliza ya Biashara, allowing small businesses to borrow up to KSh 400,000.

Fuliza ya Biashara service is available on the M-Pesa business till customers, with required to activate it by dialling *234#.

The facility allows business owners to complete transactions by overdrawing their accounts when they have insufficient funds in their M-Pesa Business tills.