NAIROBI, Kenya- Sidian Bank has joined KCB Bank Kenya and NCBA Bank Kenya as a lending partner in Safaricom’s Fuliza service, expanding the banking institutions supporting the popular M-PESA overdraft facility.
Updated Fuliza terms and conditions published by Sidian Bank list Safaricom, KCB, NCBA and Sidian as parties to the agreement governing the service.
The development makes Sidian the third bank involved in the consumer overdraft product, which allows eligible M-PESA users to complete payments when they do not have enough money in their mobile wallets.
For years, Fuliza had been associated with KCB and NCBA, which partnered with Safaricom to provide short-term credit to M-PESA customers.
The addition of Sidian broadens the lender base behind a product that has become a key source of emergency cash for households, traders and small businesses.
Sidian becomes third Fuliza lender
The revised agreement identifies Sidian Bank Limited as a licensed Kenyan bank participating in the facility alongside KCB and NCBA.
It also states that Safaricom, KCB, NCBA and Sidian may use customer information and credit history to assess eligibility, determine borrowing limits and manage repayment of the overdraft.
Fuliza limits are not uniform.
They are determined by a customer’s credit score, transaction behaviour and repayment history.
Customers who use M-PESA regularly and clear their outstanding balances on time are more likely to qualify for or maintain access to the facility.
The agreement does not state how loans will be allocated among the three lending partners or whether the addition of Sidian will immediately change individual customer limits.
However, the wider lending pool is expected to strengthen the platform’s capacity as demand for small, instant mobile loans continues to grow.
What the changes mean for customers
Fuliza remains an overdraft service rather than a conventional loan application.
Once a customer has opted in and received a limit, the facility can automatically cover eligible M-PESA transactions when the wallet balance is insufficient.
Customers must be at least 18 years old and have an active M-PESA account for at least six months before applying for the service.
The terms require borrowers to clear an outstanding facility within 30 days from the first drawdown.
If the amount remains unpaid beyond that period, access to the service may be suspended until the debt is settled.
Safaricom is also authorised to recover the outstanding amount, interest and applicable charges automatically from money received into the customer’s M-PESA account.
Existing users are required to comply with the revised terms through continued use of the service.
Credit scoring and charges
The agreement says Fuliza limits will continue to be guided by credit scoring, including a customer’s use of Safaricom services, repayment record and borrowing behaviour.
It lists an interest rate of 1.083 percent, alongside a daily administrative fee of up to Sh30 for each day an overdraft remains unpaid. Applicable taxes and other charges may also apply.
The terms underline the need for customers to treat the service as short-term credit, particularly because unpaid balances can reduce future access to the facility.
Fuliza has grown into one of Kenya’s most widely used digital credit products, helping customers make payments, send money and pay for goods when they face short-term cash-flow gaps.
By bringing Sidian Bank into the lender group, Safaricom is widening the institutional support behind Fuliza as mobile overdrafts remain central to daily transactions across the M-PESA ecosystem.
