Telecommunications firm Safaricom has launched interest-free loans of up to Sh. 100,000 that will enable Kenyans to buy goods and services on credit.
The interest-free loans service is already available for use at leading retailers including all Naivas Supermarket branches, Good Life Pharmacies and City Walk.
Dubbed Faraja, the loan service will be a collaboration between Safaricom and EDOMx Ltd which is a Kenya-based financial technology firm.
“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 by enabling their customers to buy now and pay later,” Safaricom chief executive officer Peter NdegwaSafaricom chief executive officer Peter Ndegwa said.
Using Faraja, customers will be able to purchase products from Sh. 20 to Sh. 100,000.
Businesses on Faraja will receive payment in full for a product or service immediately after a customer makes a payment through the service.
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Customers will then be required to pay back within a month at no extra charges, hidden fees or dafault penalties.
“In researching the global merchant and consumer industry, it was evident there is a substantial digital community that will appreciate our product offering including our zero interest initiative, plus much more in enhancing loyalty and customer-focused programs,” Julian Kyula, the chief executive officer of EDOMx said.
