Fuliza loans in six months to June rose to Sh176 billion from Sh81 billion compared to a similar period last year.

Surge in loan application was on the back of the measures that were put in place by the government to curb the further spread of the coronavirus pandemic.

The M-Pesa overdraft facility record indicated a Sh967 million daily borrowing amid job losses and layoffs in the age of the pandemic.

In August last year, Ksh81 billion was lent in digital loans on Fuliza through June, demonstrating the skyrocketing appetite for instant micro-loans in Kenya.

Commercial Bank of Africa (CBA) and Kenya Commercial Bank (KCB) are the underwriters of the facility, with amounts disbursed by each pegged on the market share of their respective digital loans offering Mshwari and KCB-Mpesa.

Fuliza is owned by the three entities, with Safaricom and CBA tying at 40 per cent shareholding each, while KCB owns 20 percent.

The service was launched in January 2019 to provide M-Pesa users with top-up loans whenever they need to make a transaction, but find they lack enough money in their mobile cash wallets.

The service was launched in January 2019 to provide M-Pesa users with top-up loans whenever they need to make a transaction, but find they lack enough money in their mobile cash wallets.

Customers are charged an access fee of 1 per cent and a maintenance fee of between Sh2 and Sh30 each day that the wallet remains overdrawn.

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