Mobile phone have democratized many things including access to information, but in Kenya the main attraction is access to credit. At the heart of this transformation are digital lending platforms like Fuliza and M-Shwari, pioneered by NCBA in partnership with Safaricom.
Fuliza allows M-Pesa customers to complete transactions when they have insufficient funds, essentially offering an overdraft facility, while M-Shwari provides savings and loan services directly via mobile phones. These loan facilities have become a crucial engine that is driving Kenya’s economy and powering the everyday lives of millions.
The sheer scale is staggering. In Q1 2025 alone, NCBA Group disbursed Ksh. 307 billion in digital loans, marking a significant 32% year-on-year growth. This follows a robust performance in 2024 where mobile loan disbursements soared to Ksh. 1 trillion, testament to the demand for quick and accessible credit. Fuliza, in particular, has become a lifeline for many, enabling transactions when funds are low.
One of the most important impacts of digital loans is their role in financial inclusion. Before M-Shwari launched in 2012, millions of Kenyans, particularly those in the informal sector and rural areas, were largely excluded from formal credit sources like banks. Banks often required security, extensive paperwork, and a formal employment history, barriers that digital platforms have easily bypassed.
This instant access to credit has been a game-changer for small and medium-sized enterprises (SMEs), which form the backbone of Kenya’s economy. Many digital loan borrowers are SME owners who use the funds for working capital. A small Fuliza top-up can mean the difference between losing business and continuous sales for a small shop owner, or a farmer buying fertilizer.
Beyond business, these digital loans play a vital role in managing household cash flow and acts as a cushion against emergencies. For many, Fuliza and M-Shwari serve as an emergency fund, providing immediate relief for medical expenses, school fees, or unforeseen household needs. This contributes to social stability and reduces the vulnerability of low-income households.
The data generated by these platforms provides valuable insights into financial behavior, paving the way for more tailored financial products in the future. NCBA uses this data to refine its credit scoring models, extending larger loans as customers build positive repayment histories.
It would be shortsighted to view NCBA’s digital loan products merely as sources of debt. They are, in fact, powerful economic tools that have democratized access to finance. As the regulatory landscape matures and lenders continue to innovate responsibly, digital loans like Fuliza and M-Shwari will undoubtedly continue to be a fundamental pillar of Kenya’s economic growth story. They increasingly demonstrate how small and instant loans can collectively generate colossal economic impact.