Over 65 million Kenyans use Fuliza, M-Shwari, or KCB M-Pesa. Together, these three products disbursed KES 1.5 trillion in 2025 alone. But which one is actually best for you?
This guide compares all three products with real 2025 data, calculates the true cost of borrowing, and shows you exactly which product to choose based on your situation.
Key Takeaway:
Fuliza costs 32-40% annually for short-term overdrafts. M-Shwari costs 90% annually for 30-day loans. KCB M-Pesa costs just 14% annually with flexible 1-12 month terms. Your best choice depends on how quickly you can repay.
Quick Comparison Table
| Product | Type | True Cost | Limits | Repayment | Best For |
|---|---|---|---|---|---|
| Fuliza M-Pesa | Overdraft | 1.083% daily (~40% APR) | Up to KES 100,000 | Auto-deduct from deposits | Emergency overdraft (1-7 days) |
| M-Shwari | Short-term loan | 9% fee (90% APR) | KES 2,000 - KES 1,000,000 | 30 days fixed | Large amounts, 30-day needs |
| KCB M-Pesa | Flexible loan | 1.16% monthly (14% APR) | KES 50 - KES 1,000,000 | 1-12 months flexible | Lowest cost, longer terms |
Detailed Product Comparison
1. Fuliza M-Pesa: The Overdraft King
OVERDRAFT33.4M users • KES 629B disbursed (H1 2025) • 59% of Safaricom credit revenue
What is Fuliza?
Fuliza is NOT a loan - it's an overdraft facility that lets you complete M-Pesa transactions when you have insufficient balance. Think of it as automatic emergency credit.
How Fuliza Works:
- You try to send KES 500 via M-Pesa but only have KES 200
- Fuliza automatically covers the KES 300 shortfall
- Transaction completes successfully
- You repay when money enters your M-Pesa (auto-deduct)
True Cost of Fuliza (2025):
- • Daily interest: 1.083%
- • One-time access fee: KES 2-30 (based on amount)
- • Daily maintenance: KES 10-36
Real Example:
Borrow KES 1,000 for 7 days
- • Access fee: KES 11
- • Daily interest (1.083% × 7 days): KES 76
- • Daily maintenance (avg KES 12 × 7): KES 84
- • Total repayment: KES 1,171
- • Effective cost: 17.1% for 7 days = 32% APR if rolled over monthly
Fuliza Pros:
- ✓ Automatic - no application or approval wait
- ✓ Works for all M-Pesa transactions (send, pay, withdraw)
- ✓ No fixed repayment date
- ✓ Flexible repayment (whenever you deposit money)
- ✓ Covers you in emergencies
Fuliza Cons:
- ✗ Daily fees compound quickly
- ✗ Easy to get trapped in debt cycle
- ✗ Most expensive for long-term borrowing
- ✗ Can't withdraw to bank - only for M-Pesa transactions
Best Use Case:
Emergency shortfalls you can repay within 1-7 days. NOT for planned borrowing or amounts you'll carry for weeks.
2. M-Shwari: The High-Limit Option
HIGHEST LIMITS32M users • 7.9M monthly active • KES 48B disbursed (Q1 2025)
What is M-Shwari?
M-Shwari is a mobile banking service by Safaricom and NCBA Bank offering both savings and loans. It was Kenya's first M-Pesa-integrated loan product (launched 2012).
How M-Shwari Works:
- Dial *234# and open M-Shwari account (instant)
- Check your loan limit (based on M-Pesa usage)
- Request loan up to your limit
- Receive money in M-Pesa instantly
- Repay within 30 days or get CRB-listed
True Cost of M-Shwari (2025):
- • Facility fee: 7.5% of loan amount
- • Excise duty: 1.5% (on the facility fee)
- • Total upfront: 9% of loan
- • Annual cost: 90% APR (if renewed monthly)
Real Example:
Borrow KES 10,000 for 30 days
- • Loan amount: KES 10,000
- • Facility fee (7.5%): KES 750
- • Excise duty (1.5% of KES 750): KES 11.25
- • Amount received: KES 9,238.75
- • Amount to repay: KES 10,000
- • Effective cost: 9% for 30 days = 90% APR
M-Shwari Pros:
- ✓ Highest loan limits (up to KES 1 million)
- ✓ Instant approval and disbursement
- ✓ Can withdraw to bank or use anywhere
- ✓ Savings account with interest (7-10% p.a. for lock savings)
- ✓ Well-established (12+ years)
- ✓ Min loan now KES 2,000 (up from KES 500 in 2024)
M-Shwari Cons:
- ✗ Expensive (90% APR)
- ✗ Short 30-day term only
- ✗ Immediate CRB reporting on default
- ✗ High fees eat into loan amount
- ✗ Limit starts at zero for new users
Best Use Case:
When you need large amounts (KES 20K+) and can repay within 30 days. The high limit is unmatched, but the cost is steep.
3. KCB M-Pesa: The Low-Cost Champion
LOWEST RATESUp to KES 1M limits • 14% APR • 1-12 month flexibility
What is KCB M-Pesa?
KCB M-Pesa is a full mobile banking service by KCB Bank and Safaricom. It offers the lowest interest rates among M-Pesa loans plus savings accounts with competitive interest.
How KCB M-Pesa Works:
- Dial *522# to open account
- Check loan limit (builds with usage)
- Borrow from KES 50 to your limit
- Choose repayment period (1-12 months)
- Repay via M-Pesa or KCB M-Pesa account
True Cost of KCB M-Pesa (2025):
- • Facility fee: 8.88-8.93%
- • Excise duty: 1.5% (on facility fee)
- • Monthly rate: 1.16%
- • Annual cost: ~14% APR
Real Example:
Borrow KES 10,000 for 30 days
- • Loan amount: KES 10,000
- • Facility fee (8.88%): KES 888
- • Excise duty (1.5% of KES 888): KES 13.32
- • Amount received: KES 9,098.68
- • Amount to repay: KES 10,000
- • Effective cost: ~10% for 30 days = 14% APR
- • BUT: You can choose 3, 6, or 12-month terms to reduce monthly burden
KCB M-Pesa Pros:
- ✓ Lowest interest rate (14% APR vs 90% for M-Shwari)
- ✓ Flexible repayment (1-12 months)
- ✓ High limits (up to KES 1 million)
- ✓ Zero fees for deposits/withdrawals
- ✓ Savings earn 8.5% p.a.
- ✓ Fixed deposit options available
KCB M-Pesa Cons:
- ✗ Low starting limit (KES 50-500)
- ✗ Takes time to build limit
- ✗ Requires consistent M-Pesa/Safaricom usage
Best Use Case:
Any planned borrowing where you want to save money on interest. The flexible 1-12 month terms make it ideal for larger expenses you'll repay gradually.
Head-to-Head: Same Loan, Different Costs
Let's compare the REAL cost of borrowing KES 5,000 from each product:
Scenario 1: Borrow KES 5,000 for 7 days
• Fuliza: KES 5,000 + ~KES 90 = KES 5,090 (1.8% cost)
• M-Shwari: Can't do it - minimum 30 days
• KCB M-Pesa: Can't do it - minimum 30 days
Winner: Fuliza (only option for ultra-short term)
Scenario 2: Borrow KES 5,000 for 30 days
• Fuliza: KES 5,000 + ~KES 385 = KES 5,385 (7.7% cost)
• M-Shwari: KES 5,000 + KES 450 = KES 5,450 (9% cost)
• KCB M-Pesa: KES 5,000 + ~KES 444 = KES 5,444 (~8.9% cost)
Winner: Fuliza by KES 65, but M-Shwari offers higher limits
Scenario 3: Borrow KES 50,000 for 90 days
• Fuliza: KES 50,000 + ~KES 11,520 = KES 61,520 (23% cost)
• M-Shwari: Must renew 3 times = KES 50,000 + KES 13,500 = KES 63,500 (27% cost)
• KCB M-Pesa (3-month term): KES 50,000 + ~KES 4,440 = KES 54,440 (8.9% cost)
Winner: KCB M-Pesa by KES 7,080 - saves you 65% on interest!
Which Should You Choose? Decision Framework
Choose Fuliza if:
- ✓ Emergency: You need money RIGHT NOW (no approval wait)
- ✓ Short-term: You'll repay within 1-7 days
- ✓ Small amount: Under KES 2,000
- ✓ Transaction-specific: Completing a specific M-Pesa payment
Choose M-Shwari if:
- ✓ Large amount: You need KES 20,000+ (higher than your KCB limit)
- ✓ Quick access: You need money today and can repay in 30 days
- ✓ Established limit: You already have high M-Shwari limit
- ✓ One-time need: You won't need to reborrow soon
Choose KCB M-Pesa if:
- ✓ Save money: You want the lowest interest rate (14% vs 90%)
- ✓ Flexible term: You need 3, 6, or 12 months to repay
- ✓ Planned expense: Not an emergency - you can wait for approval
- ✓ Build credit: You want to establish long-term credit history
- ✓ Any amount: From KES 50 to KES 1 million (once limit grows)
Real User Statistics (2025)
Here's how Kenyans actually use these products:
Fuliza Dominates Emergency Credit:
KES 629 billion borrowed in H1 2025 (35% growth YoY). Average loan: ~KES 500-2,000. 33.4M users.
M-Shwari Usage Declining:
Disbursements dropped 1.8% to KES 48B (Q1 2025). Users prefer KCB M-Pesa's lower rates. Still 32M users, but only 7.9M active monthly.
KCB M-Pesa Growing Fast:
Part of KES 1 trillion+ disbursed through KCB/M-Shwari platforms. Lower rates attracting users from M-Shwari.
Pro Tips to Maximize Savings
1. Never Use Fuliza Long-Term
Fuliza is for emergencies only. If you can't repay within 7 days, take a proper KCB M-Pesa loan instead. Example: KES 10,000 for 30 days costs KES 770 on Fuliza vs KES 444 on KCB M-Pesa.
2. Build Your KCB M-Pesa Limit First
Open KCB M-Pesa now even if you don't need it. Use it for savings and small transactions. In 3-6 months, you'll have a high limit for when you actually need credit.
3. Use M-Shwari Savings, Not Loans
M-Shwari's lock savings pays 7-10% p.a. - better than most bank accounts. Use it for savings, but avoid the 90% APR loans if you can get KCB M-Pesa instead.
4. Never Let Fuliza Roll Over
Fuliza's daily fees compound fast. If you can't clear it quickly, take a KCB M-Pesa loan to pay off Fuliza and save on interest.
5. Compare Before Every Loan
Always check all three limits before borrowing. Your KCB M-Pesa limit might have grown without you noticing, giving you access to cheaper credit.
Common Questions Answered
Q: Can I have all three products at once?
A: Yes! You can (and should) have Fuliza, M-Shwari, and KCB M-Pesa simultaneously. They don't interfere with each other.
Q: Which product gives highest limits fastest?
A: M-Shwari typically offers higher initial limits than KCB M-Pesa. Fuliza limits grow quickest with regular M-Pesa usage.
Q: Do they all report to CRB?
A: Yes. All three report to Credit Reference Bureaus. Late payments hurt your credit score across all lending products in Kenya.
Q: Can I use these loans to pay each other?
A: Yes, but not recommended. Taking a loan to pay another loan is the debt trap. Only exception: using cheaper KCB loan to clear expensive Fuliza balance.
Q: Which is easiest to get approved?
A: Fuliza is automatic (no approval). M-Shwari and KCB M-Pesa are instant IF you have a limit. Building that limit takes 1-6 months of M-Pesa usage.
The Bottom Line
- →If you need money for 1-7 days: Use Fuliza (but repay FAST)
- →If you need money for 30 days and want highest limits: Use M-Shwari
- →If you want to save money on interest: Use KCB M-Pesa (saves you 65-85% vs others)
- ★Smart move: Open all three accounts now. Build your limits. When you need credit, you'll have options and can choose the cheapest one.
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Sources & Data
• Business Radar Kenya - Fuliza 2025 Costs & Statistics
• Business Daily Africa - Kenyans borrow KES 629bn from Fuliza (2025)
• Tuko.co.ke - M-Pesa Loan Comparisons (2025)
• KCB Group Kenya - KCB M-Pesa Official Data
• FSD Kenya - M-Shwari vs KCB M-Pesa Analysis