Fuliza: Understanding Safaricom’s Mobile Overdraft Service

Fuliza is a mobile overdraft service offered by Safaricom in partnership with NCBA Bank and KCB Bank in Kenya. It allows M-Pesa users to complete transactions even when they don’t have enough money in their account. In other words, Fuliza provides short-term credit to cover payment shortfalls, helping millions of users maintain financial continuity in their daily transactions.

Since its introduction in 2019, Fuliza has become a vital part of Kenya’s mobile money ecosystem—offering convenience, accessibility, and liquidity to individuals and small businesses alike. Below, we break down how Fuliza works, its features, advantages, risks, and its broader role in digital finance.

Key Takeaways

• Fuliza is a mobile overdraft facility by Safaricom, NCBA, and KCB for M-Pesa users.
• It automatically covers shortfalls when making payments.
• Users repay through automatic deductions from their M-Pesa account.
• Charges apply daily until repayment is completed.
• While convenient, it should be used responsibly to avoid high cumulative fees.
• It plays a significant role in Kenya’s financial inclusion and digital economy.

What Is Fuliza?

Fuliza is an M-Pesa overdraft service that allows users to complete mobile money transactions when their account balance is insufficient charging a small daily fee until repayment. It automatically covers the shortfall, enabling you to send money, pay bills, or buy goods even when your M-Pesa wallet doesn’t have enough funds.

Technically, Fuliza functions as a revolving mobile credit facility. When you repay the borrowed amount, you can use the service again—similar to a bank overdraft linked to a current account.

How Fuliza Works

Fuliza seamlessly integrates with M-Pesa, making the process simple and automatic. Here’s how it operates step-by-step:

1. Activation:
   To use Fuliza, users must opt in through the M-Pesa menu on their Safaricom line. Once enrolled, Safaricom assigns a Fuliza limit based on the user’s M-Pesa usage, transaction history, and creditworthiness.
   
2. Transaction Attempt:
   When you try to make a payment and your M-Pesa balance is too low, Fuliza automatically tops up the deficit from your credit limit.
   
3. Notification:
   You’ll receive an SMS confirming that the transaction was completed through Fuliza, along with details of the amount borrowed and applicable charges.
   
4. Repayment:
   Any funds deposited into your M-Pesa wallet (through cash deposits, transfers, or business payments) are automatically used to repay your outstanding Fuliza balance.
   
5. Re-use:
   Once you’ve cleared your Fuliza balance, the facility is available again within your approved limit.
   

Example: How Fuliza Helps in Daily Transactions

Imagine you want to pay KSh 1,000 to a friend but only have KSh 700 in your M-Pesa account. Without Fuliza, the transaction would fail. However, suppose you’ve activated Fuliza and have a limit of KSh 500. In that case, the system automatically lends you the missing KSh 300, completes the payment, and deducts it later once you top up your account.

This automatic overdraft capability makes Fuliza a lifeline for millions of Kenyans, especially in emergency or cash-short situations.

Key Features of Fuliza

Fuliza Charges and Fees

Fuliza fees are transparent but vary depending on the amount borrowed. The service charges two main types of fees:

1. Access Fee:
   A small percentage is applied once per Fuliza transaction.
   
2. Daily Maintenance Fee:
   A recurring fee is applied daily until the outstanding balance is paid in full.
   

Example of Fuliza Charges (Approximate):

• KSh 0 – 100: KSh 0.10 per day
• KSh 101 – 500: KSh 5 per day
• KSh 501 – 1,000: KSh 10 per day
• KSh 1,001 – 2,500: KSh 20 per day
• KSh 2,501 – 70,000: KSh 30 per day

Note: These charges are subject to periodic review by Safaricom and partner banks.

Fuliza Limits: How Much Can You Borrow?

Your Fuliza limit is personalized and dynamic. Safaricom calculates it using an internal algorithm that assesses:

• Frequency of M-Pesa transactions
• Amounts transacted over time
• Timeliness of previous Fuliza repayments
• Overall M-Pesa account activity and longevity

Users who frequently transact and repay on time typically enjoy higher limits, sometimes up to tens of thousands of shillings.

Eligibility and Registration

To use Fuliza, you must meet the following requirements:

• Be a registered Safaricom and M-Pesa user with an active SIM card.
• Have a consistent transaction history on M-Pesa.
• Opt-in to Fuliza by dialing *234#, selecting “Fuliza M-Pesa,” and accepting the terms.

Once activated, you’ll immediately see your approved Fuliza limit in your M-Pesa menu.

How to Repay Fuliza

Repayment is fully automated. Any funds deposited into your M-Pesa account are automatically deducted to clear your outstanding balance.

However, you can also repay manually by:

1. Navigating to the M-Pesa menu
2. Selecting Loans and Savings → Fuliza → Repay Fuliza
3. Enter the amount you wish to pay

Clearing your Fuliza debt quickly helps restore your limit and maintain a good repayment record.

Advantages of Using Fuliza

Fuliza offers several financial benefits to users and the economy at large:

1. Instant Access to Credit

You can complete urgent transactions even when short on funds—ideal for emergencies or last-minute payments.

2. Convenience

No paperwork, guarantors, or applications required. Fuliza integrates directly with M-Pesa.

3. Reliability

Available 24/7, making it a dependable safety net for both individuals and small businesses.

4. Builds Financial Discipline

Regular usage and timely repayment can help users build a favorable credit profile, potentially unlocking access to other digital loan products.

5. Supports Small Businesses

Fuliza helps micro-entrepreneurs complete transactions, pay suppliers, or maintain liquidity when cash flow is tight.

Limitations and Risks of Fuliza

Despite its usefulness, Fuliza is not without drawbacks:

1. High Cost of Borrowing

The daily maintenance fee can add up quickly if repayment is delayed, making it more expensive than traditional loans.

2. Limited Borrowing Period

Fuliza is designed for short-term use; prolonged reliance may strain personal finances.

3. Automatic Deductions

All incoming funds are used to clear outstanding balances, which can unexpectedly reduce cash availability.

4. Credit Limit Restrictions

Your borrowing capacity depends on your M-Pesa activity and repayment behavior. Inactive users often get low limits.

Fuliza vs Other Digital Credit Services in Kenya

Kenya’s digital lending space includes several options, such as M-Shwari, KCB M-Pesa, and Tala. Here’s how Fuliza compares:

Key Difference:
Fuliza is not a traditional loan but a transaction-based overdraft, meant for short-term cash shortages rather than long-term financing.

Fuliza and Its Economic Impact

Fuliza has significantly influenced Kenya’s digital financial inclusion:

• It supports daily liquidity for small traders and consumers.
• Encourages cashless transactions, enhancing financial transparency.
• Generates revenue for Safaricom, NCBA, and KCB—making it one of Africa’s most successful mobile credit products.
• In recent years, Fuliza has disbursed billions of shillings monthly, reflecting its deep integration into Kenya’s digital economy.

Fuliza for Traders and Investors

While Fuliza is primarily a consumer product, it has indirect relevance to traders and investors:

• It reflects the growth of fintech lending and offers insights into Kenya’s evolving financial landscape.
• Investors can analyze Fuliza’s performance as a benchmark for mobile credit demand, which signals broader consumer confidence and liquidity trends.
• Businesses can leverage Fuliza to maintain working capital during low-cash periods, ensuring continuous operations.

Fuliza’s Future and Evolving Landscape

As Kenya advances toward a fully digital economy, Fuliza is expected to evolve through:

• Integration with mobile banking apps for real-time credit management.
• Flexible repayment terms to enhance affordability.
• AI-driven risk assessment, improving personalization and credit scoring.
• Expansion into business, Fuliza products to support SMEs and online merchants.

Fuliza’s continuous improvement demonstrates how innovation in mobile finance can bridge the gap between banking and everyday economic activity.

Conclusion

Fuliza represents one of Kenya’s most impactful financial innovations, merging technology, convenience, and access to credit. By enabling millions of M-Pesa users to transact seamlessly, it has strengthened the digital payment ecosystem and empowered both individuals and small enterprises.

However, users should treat Fuliza as a short-term financial bridge, not a long-term borrowing solution. Responsible use, prompt repayment, and financial discipline remain key to fully leveraging Fuliza’s benefits without falling into debt dependency.

As mobile finance continues to evolve, Fuliza stands as a powerful example of how fintech can drive inclusion, efficiency, and resilience in Africa’s digital economy.

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