NCBA Group Managing Director John Gachora. Phot | courtesy.
NCBA Group has crossed Sh1 trillion in mobile loans for 2024, driven largely by its Fuliza overdraft service and M-Shwari.
The bank’s Fuliza overdraft service, run in partnership with Safaricom, accounted for Sh906.4 billion, a 14.8 percent jump from 2023, while M-Shwari disbursed Sh98.8 billion.
Speaking on the milestone, NCBA Group Managing Director John Gachora said the figures reflected the role digital finance plays in keeping households and small businesses afloat.
“This milestone confirms that digital credit is no longer an alternative; it’s the core engine for liquidity in our economy. We remain committed to offering convenient, accessible financial solutions for everyday needs,” said Gachora.
NCBA now serves over 60 million users on Fuliza and M-Shwari combined. The growing dependence on these short-term credit facilities has positioned mobile money platforms as central players in Kenya’s credit ecosystem, even as traditional banks scale back lending due to high interest rates and rising defaults.
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The bank is now replicating its model across regional markets. Its MoKash product has disbursed over Sh130 billion in Uganda, Rwanda, and Ivory Coast, while M-Pawa in Tanzania has issued Sh20 billion in loans to date.
However, analysts warn that heavy reliance on mobile loans for essentials such as food, rent, and school fees points to deeper systemic challenges.
“When 33 million people turn to overdrafts for basic living expenses, it’s time to ask whether we’re solving or compounding the problem,” said consumer credit analyst Lucy Mwende. “We must ensure that financial inclusion doesn’t translate to debt dependency.”
To address these concerns, NCBA revised its Fuliza pricing model earlier this year, introducing a three-day grace period on overdrafts under Sh1,000 and reducing fees for larger loans to ease the repayment burden.
Despite concerns over cost and regulation, the bank believes that regional expansion, coupled with improved consumer protections, will allow mobile lending to continue playing a transformative role.
“We’re working closely with regulators to ensure our products are transparent, fair, and scalable. As we grow, we’re also evolving the structure of these services to ensure responsible lending,” Gachora said.
