Airtel Money plans overdraft service to break Safaricom’s Fuliza monopoly

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.

Kenya’s second-largest telco told Business Daily on Wednesday that 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 they lack sufficient funds, with the shortfall recovered automatically once money is received in the wallet. Overdraft limits will be determined by customer activity and transaction history, mirroring the model Safaricom introduced in 2019.

“We are currently in advanced stages with various stakeholders in regard to approvals,” Airtel Kenya told the Business Daily.

Airtel’s planned overdraft would break Safaricom’s monopoly in the mobile money credit, bringing competition into a product that has become embedded in users’ everyday spending.

Airtel has hinted that its offering will come with lower charges, an apparent swipe at Fuliza, which has become both a mass-market safety net and a significant revenue engine for Safaricom. In December 2025, Airtel Money managing director Anne Kinuthia-Otieno criticised what she described as “very high” mobile money charges in Kenya, arguing that lower fees are essential to financial inclusion.

Safaricom runs Fuliza in partnership with NCBA and KCB, but Airtel has not disclosed which lenders it is engaging for its own overdraft product.

Active users on Fuliza rose 22% to 9.1 million in the six months to September 2025, while Kenyans borrowed KES 629.2 billion ($4.8 billion) during the period, up 40% year-on-year. The average loan size also grew, highlighting the growing reliance on short-term credit.

Airtel’s entry into the space could be a strategic attempt to chip further into Safaricom’s 89.7% grip on Kenya’s mobile money market, where Airtel Money holds just 10.3%. With mobile money penetration nearing saturation at 92.8%, growth will be about usage and not new users.