Airtel Kenya Prepares Mobile Overdraft to Take On Safaricom’s Fuliza

AFRICAN BUSINESS AND ECONOMYJanuary 26, 2026 at 9:52 PM UTC

TLDR

Airtel Kenya to challenge Safaricom’s Fuliza with upcoming digital overdraft service on Airtel Money.
Overdraft limits set based on customer activity, aiming to break Safaricom’s monopoly in mobile money overdrafts with lower charges.
Competition shifts to usage, not users, as Airtel aims to deepen engagement and attract price-sensitive users with a more cost-effective alternative to Fuliza.

Airtel Kenya plans to launch a digital overdraft service on Airtel Money, setting up its first direct challenge to Safaricom’s Fuliza, which dominates Kenya’s short-term mobile credit market.

The country’s second-largest telecom operator said it is in advanced stages of securing regulatory and partner approvals and aims to roll out the product in Q1. The service will allow Airtel Money users to complete transactions even when their wallet balance is insufficient, with the amount advanced recovered automatically once funds are received.

Overdraft limits will be set based on customer activity and transaction history, following the model introduced by Safaricom in 2019. Airtel said it is working with multiple stakeholders on approvals but did not name its lending partners.

The move would break Safaricom’s monopoly in mobile money overdrafts, a product that has become part of daily spending for many Kenyans. Airtel has signaled that its offering will come with lower charges, contrasting with Fuliza, which has become a major revenue line for Safaricom.

Fuliza active users rose 22% to 9.1 million in the six months to September 2025. Borrowing reached KES 629.2 billion in the period, up 40% from a year earlier.

Key Takeaways

Airtel’s planned overdraft highlights how competition in Kenya’s mobile money market is evolving. With penetration nearing 92.8%, growth is no longer driven by adding new users but by increasing how often existing customers transact and borrow. Safaricom controls 89.7% of the mobile money market, while Airtel Money holds 10.3%. An overdraft product gives Airtel a way to deepen engagement without large gains in market share. By enabling users to complete payments despite low balances, Airtel can increase transaction frequency and wallet dependence. Pricing will be central. Fuliza is widely used but has drawn criticism for fees that accumulate for frequent borrowers. A lower-cost alternative could attract price-sensitive users who rely on short-term credit for transport, food, and bills. The entry of a second player may also increase scrutiny of mobile credit practices, as digital overdrafts now rival traditional bank lending in scale and reach.

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