NCBA Fuliza Customers Rise 17M on Demand for Short Loans

According to a recent report, the number of users of the Fuliza platform surged by 16.8 million in the year that ended in December, indicating Kenyans’ preference for short lending facilities.

NCBA said that usage went up to 33.9 million from 17.1 million in a similar period in 2021.

Customers who use Fuliza, the largest credit service offered by NCBA, pay a one percent fee of the money disbursed in addition to an additional Sh36 per day that the loan is not repaid.

M-Shwari was first unveiled in 2012 by Safaricom and NCBA. It later partnered with KCB to roll out Fuliza seven years later.

The increase in borrowers occurred just as Safaricom, KCB Group, and NCBA reduced platform fees.

Daily costs for the overdraft facility were cut from Sh20 to Sh18 from October 20, 2022, to Sh1,000 and Sh1500.

Due to improved operating income, NCBA’s profit after tax increased by 49% to Sh5.1 billion in the three months that ended in March of this year.

While operational income rose 18% to Sh15.5 billion during the year, credit loss provision fell 23% to Sh2 billion.

The hard macroeconomic circumstances that forced the Central Bank of Kenya (CBK) to raise lending rates in order to reduce inflation were the cause of the improved performance.