Fuliza M-Pesa 2026: How It Works, Fees, Limits & How to Activate

Fuliza M-Pesa 2026: How It Works, Fees, Limits & How to Activate

Fuliza is not a loan. I want to be clear about that upfront because the distinction matters for how you use it and what it costs.

Fuliza is an M-Pesa overdraft facility. When you try to send money, pay a bill, or buy airtime and your M-Pesa balance is short, Fuliza covers the difference automatically. You don't apply for it. You don't open an app. It just happens during the transaction.

This convenience makes Fuliza the most-used credit product in Kenya. Safaricom reported over KES 1 trillion in Fuliza disbursements in recent years. But that same convenience makes it dangerously easy to rack up costs without realizing it.

Here's the full picture for 2026: fees, limits, activation, and when to use Fuliza vs when to use something cheaper.

How Fuliza Actually Works

When you make an M-Pesa transaction and your balance is insufficient, Fuliza automatically covers the shortfall, up to your personal limit. You don't need to do anything extra.

Example: You have KES 300 in M-Pesa and try to send KES 1,000. Fuliza covers the KES 700 gap. Your M-Pesa shows a negative balance of KES 700 (your Fuliza outstanding amount).

When money next comes into your M-Pesa, Fuliza automatically deducts what you owe before the rest becomes available to you. This auto-deduction is both the product's strength and its biggest problem.

Fuliza is a partnership between Safaricom, NCBA Bank, and KCB Bank. The banks provide the actual funds; Safaricom provides the distribution platform through M-Pesa.

Fuliza Fees and Real Costs (2026)

Fuliza charges a daily access fee of 1.083% on your outstanding balance. There is no traditional "interest rate." The fee accrues daily until you clear the balance.

Let's calculate what Fuliza actually costs with a real example:

Cost of Borrowing KES 5,000 via Fuliza

At 30 days, you've paid KES 1,625 in fees on a KES 5,000 overdraft. That's 32.5% for the month. Annualized, it works out to roughly 395% APR.

Compare that to M-Shwari: A KES 5,000 M-Shwari loan costs KES 375 (7.5% flat fee) for 30 days. Fuliza costs 4.3 times more over the same period.

The math is clear: Fuliza is cheap for 1-3 days, acceptable for up to a week, and expensive beyond that. If you know you won't receive M-Pesa funds for more than 7 days, take an M-Shwari or KCB M-Pesa loan instead.

Fee Tiers by Amount

At KES 70,000 for 30 days, the fees alone are KES 22,743. That's nearly a third of the principal.

How to Check Your Fuliza Limit

Dial \334\0# on your Safaricom line. The USSD menu shows your:

• Current Fuliza limit
• Outstanding Fuliza balance
• Available Fuliza amount (limit minus outstanding)

You can also check via the M-Pesa app: Go to M-Pesa > Grow > Fuliza to view your status and limit.

Fuliza limits range from as low as KES 100 for new M-Pesa users to KES 70,000 for heavy M-Pesa users with long history.

How to Activate Fuliza

For most eligible M-Pesa users, Fuliza activates automatically. But if it hasn't:

1. Dial \*234# and select "Fuliza M-Pesa" from the M-Pesa menu
2. Accept the terms and conditions presented on screen
3. Opt in to the Fuliza service

Alternatively, through the M-Pesa app:

1. Open M-Pesa app
2. Go to Grow > Fuliza
3. Tap Activate and accept the terms

Once activated, Fuliza kicks in automatically whenever your M-Pesa balance is insufficient for a transaction.

Eligibility Requirements

• Active M-Pesa account with 6+ months of usage history
• Safaricom SIM card registered in your name
• Regular M-Pesa transaction activity (deposits, sends, payments)
• No outstanding Fuliza balance in default (beyond 30 days)
• No severe CRB negative listing from other mobile loan defaults

If you don't see Fuliza as an option, your M-Pesa account likely lacks sufficient transaction history. Keep using M-Pesa actively for 2-3 months and check again.

How to Increase Your Fuliza Limit

Your Fuliza limit is determined by an algorithm that evaluates multiple factors. Here's what actually moves the needle:

1. Use M-Pesa more frequently. The more transactions (sends, receives, buy goods, pay bills), the better your profile. High volume signals financial activity.

1. Receive money regularly via M-Pesa. Consistent incoming funds show the system you have capacity to repay. Irregular large dumps matter less than steady smaller deposits.

1. Repay Fuliza quickly. The faster you clear your Fuliza balance, the more the system trusts you. Users who stay at their Fuliza limit for the full 30 days get slower limit increases.

1. Use other Safaricom financial products. M-Shwari savings and loans, KCB M-Pesa, and even prepaid data purchases all feed into the scoring model.

1. Don't default. One Fuliza default (unpaid beyond 30 days) can slash your limit significantly and trigger CRB reporting.

1. Subscribe to Safaricom products. Postpaid lines, Safaricom Home, and other services in good standing can marginally improve your profile.

Typical limit progression: KES 500-2,000 (new M-Pesa user), KES 5,000-10,000 (after 6 months of active use), KES 15,000-30,000 (after 1 year), KES 40,000-70,000 (2+ years of heavy usage with clean repayment).

Fuliza vs M-Shwari vs KCB M-Pesa

This is the comparison most Kenyans need. All three are accessible via M-Pesa, no app required, and backed by major financial institutions.

My Recommendation

• Need money for 1-3 days? Use Fuliza. The daily fee is manageable for very short periods and the zero-friction access is unbeatable.
• Need money for 7-30 days? Take an M-Shwari loan. At KES 10,000 for 30 days, you pay KES 750 vs KES 3,249 with Fuliza. That's a KES 2,499 saving.
• Need more than KES 70,000? KCB M-Pesa or M-Shwari can go up to KES 1,000,000. Fuliza caps at KES 70,000.
• Need more than 30 days? None of these three. Look at Zenka (up to 6 months) or bank personal loans.

For a deeper comparison, see our full breakdown: Fuliza vs M-Shwari vs KCB M-Pesa Comparison.

Risks of Fuliza You Should Know

The Cycle Trap

Fuliza's auto-deduction means every M-Pesa deposit goes toward clearing your overdraft first. If you Fuliza KES 10,000 and receive KES 12,000, only KES 2,000 is available to you. Many users end up Fuliza-ing again immediately because their usable balance is so low after deductions.

This creates a cycle: Fuliza, receive money, auto-deduct, Fuliza again. Each cycle adds more daily fees. I've spoken with M-Pesa agents who say some customers have been in a continuous Fuliza cycle for months.

CRB Consequences

Fuliza doesn't report to CRB for normal usage. But if your balance goes unpaid beyond 30 days, it's reported as a default. This can affect your ability to get bank loans, mortgages, or even other mobile loans.

No Fixed Repayment Schedule

Unlike M-Shwari or Tala where you know the exact amount due on a specific date, Fuliza has no fixed schedule. You owe whatever the outstanding balance plus accumulated fees. This makes it harder to budget and plan.

Pros and Cons Summary

Pros

• Truly instant, zero-friction access during any M-Pesa transaction
• No application, no app download, no approval wait
• Works via USSD and M-Pesa menu (any phone, not just smartphones)
• Auto-activates for eligible users
• Cheapest option for 1-3 day cash gaps (KES 54 to borrow KES 5,000 for one day)
• Available 24/7 including holidays

Cons

• Extremely expensive beyond 7 days (395% APR equivalent)
• Auto-deduction makes it hard to break the cycle
• No repayment schedule or structure
• Maximum KES 70,000 limit
• Can mask poor financial habits (always borrowing, never budgeting)
• CRB reporting for defaults beyond 30 days

Frequently Asked Questions

How do I check my Fuliza balance?

Dial \334\0# or open the M-Pesa app and navigate to Grow > Fuliza. Both show your current outstanding balance, limit, and available amount.

Can I opt out of Fuliza?

Yes. Dial \*234# and navigate to Fuliza M-Pesa settings to opt out. This prevents Fuliza from activating during future transactions. You can opt back in at any time.

What happens if I don't repay Fuliza in 30 days?

Safaricom will report the default to CRB (Credit Reference Bureau). Your Fuliza limit may be reduced or suspended. You'll still owe the balance plus accumulated fees. After extended non-payment, the debt may be referred to a collection agency.

Does Fuliza affect my credit score?

Normal Fuliza usage (borrowing and repaying within 30 days) does not negatively affect your CRB credit score. Only defaults beyond 30 days are reported negatively. However, heavy Fuliza usage may be visible to lenders who access your M-Pesa transaction data.

Why is my Fuliza limit so low?

Common reasons: new M-Pesa account (less than 6 months old), low transaction volume, recent default on Fuliza or other mobile loans, or negative CRB listing. Increasing your M-Pesa usage and maintaining clean repayment history will gradually raise your limit.

Can I use Fuliza if I have a bad CRB record?

Fuliza eligibility is primarily based on M-Pesa usage patterns rather than CRB score. However, severe negative CRB listings from other mobile loan defaults can reduce your limit or block access entirely. Minor issues typically don't affect Fuliza eligibility.

Is Fuliza the same as a loan?

No. Fuliza is an overdraft facility, not a loan. The distinction matters: you don't apply for a specific amount, there's no fixed repayment date, and it activates only when your M-Pesa balance is insufficient. The fee structure is also different (daily accrual vs one-time fee for loans like M-Shwari). For formal loan products, consider Tala, Zenka, or M-Shwari.