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How Does Fuliza Loan in Kenya Work?

By Oluchukwu Ikemefuna

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The unpredictable nature of financial problems becomes unbearable, more so when an unanticipated expense occurs without being budgeted for. That is why the Fuliza loan emerges as one of the most reliable solutions for many Kenyans. But exactly how does it work, and how is it different from other types of loans?

Fuliza is a financial comforter in that it gives you a predetermined amount of money at your comfort. This loan limit allows you to complete your M-Pesa transactions even when your M-Pesa balance has insufficient funds.

So, in this article, let us step into the world of Fuliza loans and demystify just about everything you need to know. We take a look at what Fuliza is all about, how to know your Fuliza loan limit, and how to apply for Fuliza loans.

By the end of this piece, you should have all the knowledge you need to use Fuliza effectively and ensure your financial hiccups don’t interfere with your M-Pesa transactions.

What is a Fuliza Loan?

Fuliza Loan

Fuliza is an overdraft service all M-Pesa customers have access to. If your phone account is not sufficiently funded, you can still finish your transaction. 

Fuliza M-Pesa is like a bank overdraft. It is an NCBA Bank product made available via M-Pesa from Safaricom. Everybody else calls it or refers to it as Fuliza loans—basically, it is not a loan. Fuliza is a continual overdraft service, according to Safaricom.

After you deposit into your account, the corporation will take off their portion along with a modest interest or facility fee. The money you can have through Fuliza will depend on your set Fuliza overdraft limit. 

Read Also – How to tap into FULIZA loans 2024

How Does Fuliza Loan Work?

In Kenya, Fuliza loans have become part of daily life. Unlike most loans where one has to secure their loans to get the facility, Fuliza is an unsecured facility that uses all your M-Pesa history and usage to assess your creditworthiness.

Your transaction frequency will be used as one of the yardsticks to determine your ability to pay back the loan. Note, that an overdraft is still a form of a loan, and therefore fees and interest apply

  1. Overdraft Facility: In essence, Fuliza is simply an overdraft service.
  1. Instant Access: Fuliza allows you to send money, pay bills, and buy goods without the fear of having insufficient funds. It tops the amount short and charges an interest.
  1. Collaboration: KCB and CBA have come together to aid Safaricom in making this possible.

What are the Requirements/Eligibility Criteria for the Fuliza Loan?

Eligibility criteria that apply to qualify you for a Fuliza Loan in Kenya are:

  1. Active M-Pesa Account: You must possess an active M-Pesa account. Safaricom provides the Fuliza service through the M-Pesa platform.  
  1. Registered Safaricom Line: The Safaricom line should be registered under your name and be active for over 6 months.
  1. Sound M-Pesa Transaction History: There must be proof of a sound M-Pesa transaction history in which the account reflects good use and clear evidence of responsible use of your finances.
  1. Positive CRB Status: The participant must have a positive Credit Reference Bureau report.
  1. KYC Compliance: Keep all your details updated with Safaricom, including sharing valid identification and other necessary personal information.
  1. Fuliza Opt-in: To get access to the Fuliza service, you can dial the *234# USSD code from your Safaricom line and then select the Fuliza M-Pesa option.

These requirements will ensure that Safaricom can check your creditworthiness and your ability to pay back the loan.

Also Read – How to Apply for Quickcheck Loan

Fuliza Loan Application Process

To apply for any Fuliza loan amount in Kenya, follow the steps below:

1: Sign Up

  • Using the MySafaricom app, enroll yourself and opt-in under the Fuliza option in M-Pesa.
  • Dial *243# to access the Fuliza menu.
  • Click “Opt-in” to subscribe to Fuliza.

2: Overdraft

  • Once you subscribe, you will get a message stating how much you can borrow.
  • If the SMS doesn’t say the same, then in most cases, you are supposed to first push some cash here and there over a few times to be eligible.
  • The amount you are eligible to borrow is based on your M-Pesa history together with your credit score.

3: Charges

  • A 1% charge is applied to the amount you owe.
  • A maintenance fee of between KES 20 and 30 is charged daily on the credit balance.
  • Interest rates are also applicable if you do not settle your overdraft within 30 days.


  • Fuliza is a temporary product for overdraft needs. It will attract fees and interest costs. You need to be careful when using the service not to incur very high costs.
  • Limit Review by Fuliza is done automatically after 3 months. The more you use Safaricom and M-Pesa services and the faster you repay the Fuliza loan, the more score you will get and the higher it will be reviewed.

How to Check Your Fuliza Loan Limit

To get to know your Fuliza loan limit, there are two possible ways:

1. Through the Safaricom App (MySafaricom App)

  • Download and install MySafaricom App from the Google Play Store or Apple App Store
  • Log in using your Safaricom phone number and password.
  • Access the M-PESA menu on your device.
  • Select “Fuliza M-PESA.”
  • Your Fuliza loan limit will be displayed.

2. USSD Code

  • Dial *234# from your Safaricom line.
  • Select the option “Fuliza M-PESA.”
  • Your Fuliza loan limit will be displayed.

3. SMS

  • Dial *234# and follow the menu prompts until you arrive at “Fuliza M-PESA.”
  • The mobile money service system will then send you an SMS with your Fuliza loan limit.

4. M-PESA Menu

  • Now, proceed to the M-PESA menu on your phone.
  • Click on “Loans and Savings.”
  • Select “Fuliza M-PESA.”
  • It will show you your Fuliza loan limit.

Doing this highlights the different ways that through real-time, you can easily know your Fuliza Loan limit.

Read Also –How to Apply for Lifeline Loan

Ways to Increase Your Fuliza Loan Limits

Fuliza does not offer choices on how directly to apply for a limit increment, but here are some of the things that you can do and may influence your limit over time:

  1. Build a Positive Repayment History: Clearing your Fuliza borrowed amount on time consistently shows the app that you are a responsible borrower. This is key.
  1. Be an Active M-Pesa User: The fact that you use M-Pesa daily, whether you are sending money, buying airtime, or paying bills, is eloquent and shows you believe in the platform.
  1. Keep Your Subscription with Safaricom over a Long Time: A long history in any credit profile gives lots of data for Safaricom to rely on in assessing your creditworthiness.
  1. Beware of Scams: There are no shortcuts or third-party services that can legitimately increase your Fuliza limit. These are scams.
  1. Keep up with Monthly Loan Payments: Defaulting on your Fuliza or any other loans will highly hurt your creditworthiness and reduce your Fuliza limit.

Some users have applied a strategy to the opt-out feature of Fuliza and then registered again by selecting Opt-In. This seems to reset the limit or raise it a little, but it certainly has no guarantee of doing so, and it could simply reset your limit to the default amount.

With these tips, maybe you will hope that Safaricom increases your limit with time in Fuliza. Remember to always keep using it consistently and responsibly.

How to Repay the Fuliza Loan 

To be sincere, repaying a Fuliza loan in Kenya is so simple. Here’s how to go about it:

  1. Dial *234# from your Safaricom mobile phone.
  2. Select “Fuliza M-PESA” from the menu.
  3. Choose “Pay balance” and input the amount you want to pay. 
  4. Follow the prompts that follow to complete the repayment.

If you fail to make repayment of your overdrawn Fuliza M-pesa loan within the agreed-upon period:

  1. Once you make any form of deposit to your M-Pesa account, the money is automatically used to service your outstanding Fuliza loan balance.
  2. Full repayment shall be completed within one month after the receiving date of the loan.

With the above steps, you can efficiently service your Fuliza loan without a hustle for the maintenance of a clean credit report and for the avoidance of unnecessary penalty fees.

Also Read – How to Apply For a Fundi Loan

Benefits of Fuliza Loan

Fuliza is an overdraft service that Safaricom offers in conjunction with ancillary services provided by the NCBA Bank and KCB Bank to its customers who are Kenyan M-Pesa users. The key features and benefits of Fuliza are as outlined:

  1. Allows Instant Access of Funds: With Fuliza, one is in a position to clear any financial transaction successfully, even in the event there isn’t an M-Pesa account shortfall settlement. This way, it is the service that will be of greater use and cater to the beginning call.
  1. Convenience: One can easily be able to access and use the service without downloading and registering with another service since the loan service is integrated directly with M-Pesa.
  1. Flexible Repayment: Repayment is automatic, directly deducted from the user’s M-Pesa account during receipt of money, ensuring repayment on time.
  1. Low Transaction Costs: The cost of using Fuliza is relatively low concerning other providers of similar types of short-term credit facilities, thereby making it an accessible source to most users.
  1. No Need for Collateral: There are no requirements for collateralization of any kind to access this overdraft. Its application can easily be accessed by many users.
  1. Instant Approval: Without long approving processes, users can gain access to this important overdraft instantly, so it becomes a reliable source for urgent financial needs.
  1. Good Credit Score: By repaying their Fuliza loan on time, users will be able to increase their credit score. This will let them get possible increments in the loan limit toward the future and take another financial product serenely.

Using a Fuliza loan can bring a significant impact in improving your financial flexibility and offer a safety net in cases of unexpected expenses or money shortage.

Read Also – Best Phone Loan Apps in Kenya

Are There Any Downsides to Using Fuliza?

For all its niceness about receiving money, Fuliza has the following disadvantages:

  1. Charges: a one-time access fee and a daily maintenance fee in case you fail to repay within the free period (3 days for transactions below KSh 1,000). The charges can be pretty expensive if, for example, you decide to borrow for a long period.
  1. Debt Trap: You can easily fall into a vicious circle of becoming indebted if you keep relying on Fuliza to pay for your spending. It is easy to be tempted to spend what you do not physically have, yet the accumulation of debt can be stressful and difficult to handle.
  1. Reduced Access to Formal Credit: Excessive borrowing via Fuliza and defaulting on your repayments will hurt your chances of getting credit facilities from banks and other financial institutions.

Overall, Fuliza can be a helpful tool for occasional short-term needs, but it’s important to be aware of the downsides and use it responsibly. 

Final Thoughts 

The Fuliza loan in Kenya offers a convenient way to access funds when your M-Pesa balance is low. You can use it to complete transactions and repay later.

But this is determined by the usage as well as the repayment history. The application is simple: just opt via Mpesa. Knowing all these essentials guarantees you get the most out of the service.

Any queries or comments about how to go about a Fuliza loan, the limit, or the registration procedure, you can please leave a comment. Also, follow us on Facebook a Silicon Africa, Instagram a Siliconafricatech, and Twitter at @siliconafritech.

Frequently Asked Questions 

Is Fuliza safe?

Fuliza is a real service provided by M-Pesa in partnership with the banks in the country of Kenya. Usage has to be with responsibility to know what charges one incurs.

How can I use Fuliza?

Fuliza works seamlessly with most M-Pesa transactions. When you try sending money, or even paying for something, while your M-Pesa account is low, Fuliza will automatically clear the rest of the balance as long as you are within the limit.

What do I need to pay to use Fuliza?

There are two main charges: the access fee you will be charged for the amount you borrow daily and a one-time fee upon use of the Fuliza service.

What will happen if I do not pay back Fuliza on time?

If you pay back late, more charges will be incurred, and your limit for Fuliza may be reduced or canceled totally.

How do I cancel using Fuliza?

You can unsubscribe from Fuliza at any time by dialing *234# and selecting “Fuliza M-PESA,” followed by “deactivate.”



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Onyinyechi Ikemefuna
Onyinyechi Ikemefuna

Ikemefuna Onyinyechi Patience, a skilled Content Writer hailing from Anambra State Nigeria, holds a Higher National Degree in microbiology from Federal Polytechnic Oko, Anambra. Armed with robust research and SEO expertise, she excels in crafting articles spanning technology, finance, healthcare, education, and lifestyle. Her work stands out for its ability to authentically inspire and engage while inciting action. Beyond her writing prowess, Ikemefuna finds joy in reading, exploring movies, and delving into continuous research, contributing to her growth as a proficient writer.

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