Safaricom PLC’s Fuliza overdraft service has emerged as a transformative force in the microloan sector, overshadowing competitors and establishing a dominant position, according to recent findings by the Competition Authority of Kenya (CAK).

The regulatory body’s comprehensive credit market inquiry highlighted a notable paradigm shift in the industry. Several rivals have gradually ceded ground in the microloan segment since Fuliza’s introduction in January 2019.

Fuliza, renowned for its ability to enable M-Pesa users to conduct transactions even with insufficient funds, has witnessed an exponential increase in its user base and loan disbursements, eclipsing traditional loan services like M-Shwari despite the latter’s widespread popularity.

Between January 2019 and March 2020, Fuliza experienced a remarkable surge of 232% in loan disbursements, accompanied by a 213% rise in the total value of loans issued.

This unprecedented growth has led to a noticeable decline in both the number and value of loans disbursed by other digital credit providers. However, the average loan size across the sector has seen an uptick.

As of the six months ending in September last year, Fuliza’s disbursement value surged by 32.8% to an impressive Sh419.2 billion, with the platform catering to over 7.5 million unique users.

This growth trajectory persisted despite a reduction in the average loan size and Safaricom’s earnings from the service. This was following a strategic tariff adjustment aimed at enhancing customer engagement.

In collaboration with NCBA and KCB, Fuliza remains at the forefront of the digital credit market, highlighting the evolving dynamics of microfinance in Kenya’s evolving financial landscape.

Fuliza’s ascent to prominence has redefined the microloan landscape in Kenya, offering unparalleled convenience and accessibility to millions of users.

MasterCard and KCB Bank’s Strategic Alliance To Improve Payment Systems

Its seamless integration with M-Pesa, Kenya’s leading mobile money platform, has democratized access to credit, empowering individuals to meet their financial needs promptly and efficiently.

Unlike traditional loan services that often entail cumbersome application processes and stringent eligibility criteria, Fuliza offers instant overdraft facilities, allowing users to bridge short-term financial gaps seamlessly.

Furthermore, Fuliza’s strategic partnership with prominent financial institutions like NCBA and KCB has strengthened its market position, leveraging their extensive networks and expertise in the banking sector.

This collaboration has facilitated robust risk management practices, ensuring responsible lending practices and enhancing customer confidence in the platform’s reliability and security.

In addition to its widespread adoption among individual users, Fuliza has also emerged as a lifeline for small businesses, providing much-needed liquidity to navigate cash flow challenges and seize growth opportunities.

By offering flexible repayment terms and competitive interest rates, Fuliza enables entrepreneurs to access working capital swiftly, fostering business expansion and economic resilience.

On how to access fuliza mpesa, users can simply dial *234# and select the fuliza mpesa option to opt in. Once enrolled, users can utilize the service to bridge short-term financial gaps seamlessly.

On how to increase the fuliza limit, individuals can leverage safaricom and mpesa services regularly, ensuring timely repayment of their fuliza m-pesa facility and increasing the frequency of their mpesa and fuliza transactions.

Moreover, users can dial *234# to opt out of fuliza mpesa or increase their limit from 500 to 5000 by requesting a limit increase. They are however required to ensure they are frequent users of mpesa and fuliza services, and repaying their fuliza loan on time.

Checking one’s fuliza limit and balance is also straightforward; users can dial *234#, select fuliza mpesa, and then choose the respective options to check their limit or balance, receiving an SMS message with the necessary details.