Introduction

Safaricom's Fuliza service has become a dominant force in Kenya's digital credit landscape, with revenue climbing sharply as more users rely on overdraft features to complete transactions. The service continues to reshape how Kenyans access short-term funds.

What Happened

Fuliza generated KES 4.9 billion ($38 million) in revenue during the first half of 2026, an 86% increase from the prior period. The service attracted 17.2 million borrowers, nearly double the previous figure, while disbursing KES 1.16 trillion in loans—an 84% year-on-year rise. Despite the volume surge, the average loan size fell 24.6% to KES 192 ($1.49), reflecting a shift toward smaller, more frequent advances. Safaricom's broader lending portfolio also moved, with KCB M-PESA reporting KES 500 million in revenue and M-Shwari reaching KES 1 billion, though both saw active customer declines.

  • Fuliza disbursements reached KES 1.16 trillion, up 84% year-on-year
  • Borrower count neared 17.2 million, an 88.9% increase
  • Average loan size declined to KES 192 from KES 254.60
  • KCB M-PESA revenue rose 11.9% to KES 500 million
  • M-Shwari revenue grew 7.7% to KES 1 billion

Why This Matters

Fuliza now accounts for roughly 71% of Safaricom's six-product lending portfolio, making it the dominant earner in the company's credit lineup. The growth reflects a broader shift toward mobile short-term credit in Kenya, even as declining repayment ratios—Fuliza's ratio fell to 99.6% from 102.4%—highlight potential risks around borrower behavior and portfolio sustainability. Safaricom's leadership emphasized behavioral scoring and multiple funding partners as tools to manage risk, though full non-performing loan data remains unpublished.

Key Takeaways

  • Fuliza revenue surged 86% to KES 4.9 billion with 17.2 million borrowers
  • Average loan size dropped 24.6% to KES 192, signaling smaller advances
  • Fuliza represents 71% of Safaricom's total lending revenue
  • Repayment ratios declined across all major M-PESA lending products
  • KCB M-PESA and M-Shwari posted single-digit growth alongside falling active user counts

Conclusion

As Safaricom expands M-PESA into credit, savings, insurance, and merchant services, the Fuliza surge illustrates both the scale and the scrutiny facing Kenya's digital credit ecosystem. With 17.2 million borrowers and counting, the service underscores how deeply mobile lending has penetrated daily finance—but without full risk disclosures, the long-term economics remain an open question.