Safaricom, Kenya’s largest telecommunications operator, generated KES 4.9 billion ($38 million) from Fuliza, its M-PESA overdraft service that lets clients full transactions once they lack sufficient cash of their wallets.
On Thursday, Safaricom mentioned at its investor briefing held in Nairobi that Fuliza’s revenue rose 86% within the six months to September 2026, with the variety of borrowers nearly doubling to 17.2 million. The service, operated by Safaricom in partnership with NCBA Bank and Kenya Commercial Bank (KCB), turned the corporate’s largest cellular lending enterprise by revenue, even as the typical quantity borrowed fell 24.6%.
The figures level to rising reliance on short-term credit score as a revenue supply for M-PESA. Lending is rising a lot quicker than funds revenue. However, smaller mortgage sizes and declining reimbursement ratios increase questions on borrower behaviour and the enterprise’s economics.
Fuliza disbursed KES 1.16 trillion ($8.97 billion) throughout the interval, up 84% from the earlier yr. Its buyer base additionally grew 88.9% to 17.2 million.
Revenue rose at virtually the identical tempo as buyer development. The common quantity borrowed, although, declined 24.6% to KES 192 ($1.49), from KES 254.60 ($1.97).
The numbers recommend Fuliza is reaching extra clients via smaller advances. Safaricom has not disclosed how a lot of the expansion got here from clients borrowing extra steadily, new borrowers coming into the service, or adjustments in credit score limits.
Fuliza’s development contrasts with Safaricom’s different cellular lending merchandise, which it operates with banking companions.
KCB M-PESA, a financial savings and mortgage service supplied with Kenya Commercial Bank (KCB), generated KES 500 million ($3.9 million) in revenue, up 11.9%, even as its lively buyer base fell 7% to 4.2 million.
M-Shwari, Safaricom’s financial savings and microloan service with NCBA Bank, recorded revenue development of seven.7% to KES 1 billion ($7.8 million), whereas lively clients fell 5.8% to 7.4 million.
As Safaricom seems to be to increase M-PESA past funds into credit score, financial savings, insurance coverage and service provider providers, its investor presentation exhibits credit score revenue grew 54.4% to KES 7 billion ($54.3 million) within the half-year, in contrast with 13.6% development in general M-PESA revenue to KES 100.07 billion ($775.7 million).
Fuliza accounted for roughly 71% of revenue from the six lending merchandise, making it the portfolio’s principal supply of earnings.
The reimbursement figures provide one other dimension to the expansion. Fuliza’s repayments reached KES 1.15 trillion ($8.94 billion), equal to 99.6% of disbursements, down from 102.4% a yr earlier. KCB M-PESA’s ratio additionally fell to 96.7% from 99.5%, whereas 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 mentioned.
The figures present Fuliza’s development, however not the total image of the danger behind it. The repayment-to-disbursement ratio fell to 99.6% from 102.4%, although the comparability doesn’t present how a lot of the loans issued throughout the interval stay unpaid. Repayments recorded within the six months could embody cash owed from earlier lending durations.
Safaricom didn’t disclose Fuliza’s non-performing mortgage ratio in both report. The disclosures additionally don’t present how credit score danger is cut up between Safaricom and its banking companions.
