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

Safaricom, Kenya’s largest telecommunications operator, generated KES 4.9 billion ($38 million) from Fuliza, its M-PESA overdraft service that lets customers complete transactions when they lack enough money in their wallets. 

On Thursday, Safaricom said at its investor briefing held in Nairobi that Fuliza’s revenue rose 86% in the six months to September 2026, with the number of borrowers nearly doubling to 17.2 million. The service, operated by Safaricom in partnership with NCBA Bank and Kenya Commercial Bank (KCB), became the company’s largest mobile lending business by revenue, even as the average amount borrowed fell 24.6%. 

The figures point to growing reliance on short-term credit as a revenue source for M-PESA. Lending is growing much faster than payments revenue. However, smaller loan sizes and declining repayment ratios raise questions about borrower behaviour and the business’s economics.

Fuliza disbursed KES 1.16 trillion ($8.97 billion) during the period, up 84% from the previous year. Its customer base also grew 88.9% to 17.2 million.

Revenue rose at almost the same pace as customer growth. The average amount borrowed, though, declined 24.6% to KES 192 ($1.49), from KES 254.60 ($1.97).

The numbers suggest Fuliza is reaching more customers through smaller advances. Safaricom has not disclosed how much of the growth came from customers borrowing more frequently, new borrowers entering the service, or changes in credit limits.

Fuliza’s growth contrasts with Safaricom’s other mobile lending products, which it operates with banking partners. 

KCB M-PESA, a savings and loan service offered with Kenya Commercial Bank (KCB), generated KES 500 million ($3.9 million) in revenue, up 11.9%, even as its active customer base fell 7% to 4.2 million. 

M-Shwari, Safaricom’s savings and microloan service with NCBA Bank, recorded revenue growth of 7.7% to KES 1 billion ($7.8 million), while active customers fell 5.8% to 7.4 million.

Safaricom’s CEO Peter Ndegwa during the investor briefing at the company’s Nairobi offices.

As Safaricom looks to expand M-PESA beyond payments into credit, savings, insurance and merchant services, its investor presentation shows credit revenue grew 54.4% to KES 7 billion ($54.3 million) in the half-year, compared with 13.6% growth in overall M-PESA revenue to KES 100.07 billion ($775.7 million).

Fuliza accounted for roughly 71% of revenue from the six lending products, making it the portfolio’s main source of earnings.

The repayment figures offer another dimension to the growth. Fuliza’s repayments reached KES 1.15 trillion ($8.94 billion), equivalent to 99.6% of disbursements, down from 102.4% a year earlier. KCB M-PESA’s ratio also fell to 96.7% from 99.5%, while M-Shwari’s declined to 105.3% from 108%.

“Behavioural scoring and multiple funding partners are helping us extend responsible credit, personalise access and manage portfolio risk more effectively for customers and businesses across Kenya,” Safaricom CEO Peter Ndegwa said. 

The figures show Fuliza’s growth, but not the full picture of the risk behind it. The repayment-to-disbursement ratio fell to 99.6% from 102.4%, though the comparison does not show how much of the loans issued during the period remain unpaid. Repayments recorded in the six months may include money owed from earlier lending periods.

Safaricom did not disclose Fuliza’s non-performing loan ratio in either report. The disclosures also do not show how credit risk is split between Safaricom and its banking partners.