Safaricom’s Faraja Blocked by CBK
The Central Bank of Kenya (CBK) has blocked Safaricom’s launch of Faraja , its zero-interest Buy Now, Pay Later service. According to Business Daily on Thursday, July 28, CBK blocked the move by the telecommunication giant to launch the new service.
The product was set for launch on July 6 at 8 pm..But a call from the CBK came in the afternoon before its launch, with clear directions that the product was under regulatory review and pending approval…This forced Edomx to call off the launch.
Safaricom on their part did not give up on the project and promised that although there will be a delay, they would try to launch the service later.
They responded by saying Faraja was to be offered by EDOMx in partnership with Safaricom and Equity Bank. As communicated by EDOMx, Farajas’s launch was postponed and a new date will be communicated in due course.
The service by Safaricom was announced to be launched a month ago. Faraja would help customers purchase items while using the service and pay later. These ‘loans’ would also be interest-free and would be paid back within a month of borrowing.
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