BAD NEWS TO KENYANS WHO HAVE FULIZA LOANS.

Kenya’s biggest telecommunication company, Safaricom have issued a tough condition to Kenyans who have fuliza loans.

According to the new rule, the company will block users who have defaulted on their fuliza loans from accessing their mshwari and kcb savings.

This follows an update of terms and conditions which now allow safaricom to hold to user’s amount in kcb and mshwari accounts after defaulting fuliza loans.

“You hereby agree and confirm that NCBA and KCB are entitled in its discretion to prevent or restrict you from withdrawing in whole or in part the funds in your accounts for so long as and to the extent of the amount outstanding in respect of your loan without KCB or NCBA giving any notice to you and/or without incurring any liability to you whatsoever in that connection,” reads the terms and conditions that come into effect on November 14, 2021.

On the new updated rule, Safaricom has the right to take money from the savings accounts of the defaulter and use it to offset fuliza loan.

The new terms also introduce a 1.083 per cent interest rate on Fuliza, whereas previously, the service charged a facility fee of the same amount.

Safaricom says the updated terms are not new but a standard for banking products.

“The new terms clarify the fact that Fuliza may be offered across additional M-Pesa products,” Dennis Mbuvi, a communication officer at Safaricom said in response to inquiries.

“As a financial service, Fuliza is offered by KCB and NCBA as licensed by the Central Bank of Kenya (CBK) hence the lien clause which is standard for banking products and also there in the current terms,” he added.