Sterling Capital Limited predicts Safaricom's Fuliza overdraft service will generate KES 21 billion in revenues for the telco and banking partners CBA and KCB Group by 2019, according to a financial analysis.
Fuliza provides M-PESA users with a 30-day credit facility tied to transaction history, charging interest while avoiding traditional loan structures. The service reached 4.2 million users by January 2019, distributing KES 6.2 billion in credit during that period.
The report highlights Fuliza's role in increasing M-PESA transaction volumes and user retention. It notes that non-repayment risks CRB listings, creating financial accountability. Sterling Capital estimates a 10% monthly user growth rate, with revenues split 40% to Safaricom, 40% to CBA, and 20% to KCB Group.
"Fuliza strengthens customer loyalty and drives complementary service revenues," the analysis states. It also claims the product's convenience and cost advantages position it to challenge online lenders, shifting user priorities toward value-added services over price competition.
The report anticipates Fuliza will reshape mobile payment competition through its integration into M-PESA's ecosystem, offering a distinct advantage over rivals lacking similar services.
