Co-op Bank Kamilisha: How to get up to Ksh100K and the charges

Co-operative Bank's Kamilisha Transaction service enables customers to access an overdraft of up to Ksh100,000 when their account balances are insufficient. This short-term credit facility can be used for eligible payments such as electricity bills and M-Pesa transfers. Eligible individual and business customers with active Co-operative Bank accounts and opt-in status can utilize the service through the mobile banking app or USSD codes.

The amount available to each customer depends on their banking activity, including account transactions, salary deposits, and business turnover. The bank reviews limits monthly based on account activity, repayment history, and eligibility criteria. Kamilisha operates like Safaricom's Fuliza, but its eligibility criteria and charges differ.

When a customer attempts an eligible transaction without sufficient funds, they are prompted to use Kamilisha, which displays the required amount and applicable charges. The facility incurs a one-time access fee of 2% of the borrowed amount, a 20% excise duty, a daily maintenance charge of 0.2% on the outstanding balance, and a monthly credit life insurance premium of 0.034%.

These charges result in the customer paying more than the borrowed amount. For a Ksh1,000 transaction, the total charges over 30 days would be approximately Ksh84.35. Customers are advised to repay the overdraft promptly to minimize charges. The facility has sparked discussions about banks' assessment of borrowers and the role of credit reference bureaus.

While Co-operative Bank's terms state that eligibility is subject to internal credit assessment processes that may include credit bureau checks, they do not confirm that CRB checks are the sole determining factor. Customers can activate Kamilisha through the bank's digital channels and repay outstanding balances before opting out.