Customers borrow Sh81 billion in 6 months through Fuliza overdraft facility

Safaricom disbursed Sh81 billion in M-Pesa overdraft loans in six months on its M-Pesa’s overdraft facility Fuliza in the six months to June 2019, according to financials released by the two banks backing the facility.

Commercial Bank of Africa (CBA) provided Sh54 billion while KCB contributed Sh27 billion to Fuliza.

The amounts disbursed by each pegged on the market share of their respective digital loans offering Mshwari and KCB-Mpesa.


According to Standard Investment Bank (SIB), KCB earned Sh484 million in the first half of 2019 in revenue from Fuliza, totaling Sh2.4 billion for the entire mobile product as at end of June 2019.

READ: Mobile channels push KCB Group Half Year profit to Sh12.7b

SIB estimates that Safaricom more than doubled the revenue, earning at least Sh968 million in the six months to June 2019.

“Based on the current run rate and our estimates on costs and forward guidance provided by Safaricom’s management for Financial Year 2020, we expect Fuliza to account for at least 25 percent of Earnings Before Interest and Taxes growth,” SIB says.

Fuliza is owned by the three entities, with Safaricom and CBA tying at 40 percent shareholding each, while KCB owns 20 percent.

The service was launched in January 2019 to provide M-Pesa users with top-up loans whenever they need to make a transaction, but find they lack enough money in their mobile cash wallets.

Customers are charged an access fee of 1 percent and a maintenance fee of between Sh2 and Sh30 per each day that the wallet remains overdrawn.

Whenever customers receive an inflow into their M-PESA wallet, the overdrawn position is deducted.