Safaricom introduced Fuliza, Kenya's first mobile-based overdraft facility, in January 2019. The service enables M-Pesa users to conduct transactions even with insufficient account balances, operating through partnerships with KCB Group and CBA Group.
Analysts at Sterling Capital estimated Fuliza could generate Sh21 billion in revenue in 2019, with Safaricom earning Sh7.4 billion from the arrangement. The service saw 4.2 million users within its first month, advancing KSh6.2 billion in transactions.
Researchers predict Fuliza will enhance M-Pesa's transaction volumes, customer retention, and market dominance. The facility leverages Kenya's high mobile penetration and demand for accessible credit, with projections of 10% monthly user growth and 6% annual M-Pesa subscriber expansion.
Mobile money transactions outpaced card payments significantly in 2018, with KSh3.98 trillion in mobile transactions versus KSh1.41 trillion in card payments. Fuliza's auto-collection feature reduces default risks, though regulatory challenges remain a potential concern.
