Fuliza, Explained: How the Charges Actually Work (2026)
Fuliza, explained: how the charges actually work (2026)
Fuliza is M-Pesa's overdraft: when you pay or send money and your balance falls short, Fuliza completes the transaction and you repay from your next M-Pesa inflow. It's the most used credit product in Kenya — and one of the least understood, because its cost is a daily fee, not an interest rate. This guide explains the machinery. For the current tariff, see the dated table below — never rely on a screenshot from social media.
What Fuliza actually is
- An opt-in overdraft on M-Pesa, provided by Safaricom with its partner banks (NCBA and KCB), which underwrite the credit.
- It triggers automatically at the moment of payment when your balance is short — that convenience is the product, and the danger.
- Your limit is set from your M-Pesa usage history and grows (or shrinks) with behaviour.
How the cost works (read this twice)
Fuliza charges two things:
- An access fee each time you fuliza — a one-off 1% of the amount.
- A daily maintenance fee for every day the balance stays unpaid, tiered by the amount outstanding — plus 20% excise duty on that fee.
The tariff as restructured by Safaricom, NCBA and KCB (as at 8 July 2026):
| Outstanding balance | Daily maintenance fee |
|---|---|
| KSh 1 – 100 | Free |
| KSh 101 – 500 | First 3 days free, then KSh 2.50/day |
| KSh 501 – 1,000 | First 3 days free, then KSh 5/day |
| KSh 1,001 – 1,500 | KSh 18/day |
| KSh 1,501 – 2,500 | KSh 20/day |
| KSh 2,501 – 70,000 | KSh 25/day |
The structural point that stale screenshots miss: a daily fee compounds into a very expensive short loan if you take days to repay. A small overdraft cleared tomorrow costs little; the same overdraft carried for a month can cost more than a licensed digital loan for the same amount — compare licensed personal loans before defaulting to convenience.
Repayment — automatic, and that matters
Fuliza repays itself from your next M-Pesa inflow — deposit, incoming transfer, or payment received. You cannot schedule it: money that lands goes to Fuliza first. If you're budgeting to the shilling, an outstanding Fuliza balance means your next inflow is already spoken for.
Does Fuliza affect your credit record?
The credit is underwritten by regulated banks (NCBA and KCB), so unpaid balances can be reported through Kenya's credit reference bureau (CRB) system like any other bank credit. Treat it as real credit, because it is — and check whether an app or lender is licensed by the CBK before you rely on it.
Using Fuliza sanely
- Keep it for bridging hours or days, not funding weeks.
- Clear it the day money lands — every extra day is another fee.
- If you're fulizaing rent-sized amounts monthly, you don't need an overdraft; you need a cheaper structured product — compare licensed personal loans.
- Check your Fuliza standing in M-PESA → Loans & Savings.
Frequently asked questions
Is Fuliza a loan? Functionally yes — bank-underwritten credit with fees. The packaging as "completing your transaction" makes it feel smaller than it is.
Why did my limit drop? Limits track usage and repayment behaviour; carrying balances long or defaulting shrinks them.
Fuliza vs M-Shwari vs a loan app? Fuliza bridges a payment right now; M-Shwari and licensed loan apps give a structured amount for a term. For anything you'll repay over weeks, compare the structured options — they're usually cheaper. See how to spot an unlicensed loan app before you borrow.