Safaricom makes more from M-PESA overdrafts as borrower numbers surge

Kenya's largest telecommunications firm, Safaricom, generated KES 4.9 billion, roughly $38 million, from Fuliza, its mobile money overdraft service, M-PESA. This service allows customers to make purchases even when their accounts are short on funds. During the investor briefing in Nairobi, Safaricom reported a 86% increase in Fuliza's revenue over the six months ending September 2026, with the number of borrowers nearly doubling to 17.2 million.

The service, operated jointly with banks NCBA Bank and KCB, has become the company's biggest mobile lending venture by revenue. Despite this growth, the average loan amount has declined by 24.6%. The data indicates an increasing reliance on short-term credit as a revenue source for M-PESA. However, the service's expansion raises questions about borrower behavior and the economic viability of the lending model.

Safaricom has not clarified whether the growth is due to more frequent borrowing, new customers joining the program, or adjustments in credit limits.

Fuliza disbursed KES 1.16 trillion, up 84% from the previous year, and its customer base expanded by 88.9% to 17.2 million. Revenue from Fuliza rose almost as rapidly as the customer base. The average loan size dropped 24.6% to KES 192 compared to KES 254.60 in the previous period. Fuliza's growth contrasts sharply with other mobile lending services Safaricom runs with banking partners.

KCB M-PESA, a savings and loan service with Kenya Commercial Bank (KCB), generated KES 500 million in revenue, a 11.9% increase, while its active customer base fell by 7% to 4.2 million. M-Shwari, Safaricom's savings and microloan service with NCBA Bank, saw a 7.7% growth in revenue to KES 1 billion, with a 5.8% drop in active customers to 7.4 million.

Safaricom’s CEO, Peter Ndegwa, highlighted the company's expansion into credit, savings, insurance and merchant services during the investor briefing. Fuliza contributed about 71% of the revenue from the six lending products, becoming the portfolio's primary source of earnings. The repayment figures reveal a repayment rate of 99.6% for Fuliza, slightly lower than the 102.4% achieved the previous year.

The repayment rate for KCB M-PESA fell to 96.7% from 99.5%, and M-Shwari's rate declined to 105.3% from 108%. Safaricom's CEO emphasized the role of behavioral scoring and multiple funding partners in managing risk and personalizing credit access for customers in Kenya.