Kenyans borrowed a staggering KSh1.24 trillion through Fuliza in 2025, underscoring the growing reliance on short-term digital credit to manage daily expenses, according to new data released by NCBA Group.
The data shows that digital lending continues to play a central role in Kenya’s financial ecosystem, with NCBA’s digital credit business emerging as a major driver of profitability and customer engagement.
Fuliza dominates Kenya’s digital credit landscape
Fuliza, the overdraft facility integrated into M-Pesa, recorded a sharp rise in usage during the year, reflecting increased demand for instant, small-value loans among millions of users.
Launched in 2019, Fuliza allows customers to complete transactions even when their account balance is insufficient, with repayments automatically deducted once funds are received.
The KSh1.24 trillion borrowed through Fuliza highlights its position as one of the most widely used financial tools in the country, particularly for managing short-term liquidity needs such as transport, food, and utility payments.
Digital lending boosts NCBA profitability
NCBA reported that its digital lending segment contributed 31.9 percent of total pre-tax profits, generating KSh8.9 billion in earnings. This represents a 20.2 percent increase compared to the previous year, signaling strong growth in the bank’s digital financial services.
The performance reflects a broader shift in banking, where mobile-based lending platforms are increasingly outperforming traditional credit channels due to their accessibility, speed, and convenience.
Analysts note that the continued expansion of digital lending has allowed financial institutions to tap into previously underserved segments, particularly informal sector workers and small-scale entrepreneurs.
M-Shwari records slight decline
While Fuliza usage surged, loans disbursed through M-Shwari recorded a slight decline, dropping to KSh96 billion in 2025 from KSh99 billion in 2024.
The dip suggests a possible shift in consumer preference toward more flexible and instantly accessible credit products like Fuliza, which do not require a formal loan application process.
Industry observers also attribute the decline to changing borrowing patterns, with users increasingly favoring overdraft-style facilities over fixed-term digital loans.
KSh3.7 billion disbursed daily
Overall, NCBA disbursed KSh1.35 trillion in digital loans in Kenya during the year, translating to approximately KSh3.7 billion per day.
The scale of lending highlights the depth of Kenya’s digital financial ecosystem, which continues to set the pace globally in mobile money innovation and financial inclusion.
Experts say the sustained growth in digital lending reflects both opportunity and risk, as increased access to credit must be balanced with responsible borrowing and effective regulation.
Growing reliance on mobile credit
The latest figures point to a growing dependence on mobile-based financial solutions, especially in a challenging economic environment where households are increasingly turning to short-term credit to bridge income gaps.
As digital lending continues to evolve, stakeholders are expected to focus more on consumer protection, credit scoring improvements, and sustainable lending practices to ensure long-term stability in the sector.
With Fuliza leading the charge, Kenya’s digital credit market remains one of the most dynamic in Africa, reshaping how millions of people access and use financial services.
