Safaricom’s innovative microloans facility, Fuliza, has sparked a paradigm shift in the digital credit market in Kenya, leaving a profound impact on competitors in the sector. The advent of Fuliza has not only revolutionized the accessibility of microloans but has also reshaped the competitive dynamics within the industry, as highlighted by recent disclosures from the Competition Authority of Kenya (CAK).

Quick Summary:

  • Fuliza, Safaricom’s microloans facility, has emerged as a dominant player in the digital credit market.
  • The platform’s rapid expansion since its launch in January 2019 has led to market segmentation, affecting competitors.
  • Fuliza’s growth trajectory reflects a significant increase in disbursements and user base, reshaping the microloans landscape in Kenya.

Disrupting the Status Quo:

The introduction of Fuliza in January 2019 has disrupted the traditional dynamics of the digital credit market in Kenya. As per the CAK report, Fuliza’s entry has triggered a significant surge in disbursements, recording a remarkable 232 percent growth between January 2019 and March 2020. This surge in disbursements has not only solidified Fuliza’s position as a market leader but has also led to the gradual exit of other digital credit providers from the microloans segment.

Market Segmentation:

The CAK report underscores the phenomenon of market segmentation resulting from Fuliza’s expansion. While traditional providers witnessed a decline in the number and total value of disbursements, Fuliza maintained its market share by catering to lower-value loan segments effectively. The average loan size for other providers surged significantly, indicating a shift towards larger loan facilities, thus allowing Fuliza to consolidate its presence in the microloans market.

Fuliza’s Unprecedented Growth:

Fuliza’s meteoric rise is reflected in its staggering disbursement figures and user base expansion. Over a period of six months ending September last year, Fuliza witnessed a 32.8 percent increase in disbursements, reaching a total value of Sh419.2 billion. This surge in disbursements paralleled a substantial rise in the number of distinct users, which peaked at 7.5 million, further solidifying Fuliza’s foothold in the digital credit landscape.

Safaricom’s Strategic Initiatives:

Safaricom, in tandem with its partners NCBA and KCB, has continually innovated to sustain Fuliza’s growth trajectory and enhance its value proposition to customers. Despite a tariff reduction in September 2022 aimed at stimulating usage, Safaricom remains committed to Fuliza’s overarching goal of transforming lives through financial inclusion. Initiatives such as fee restructuring and credit repair programs underscore Safaricom’s dedication to addressing customer needs and fostering responsible lending practices.


In conclusion, Fuliza’s ascent as a pioneering microloans facility has reshaped the digital credit market in Kenya, propelling Safaricom to the forefront of financial innovation. By offering accessible and convenient credit solutions to millions of Kenyans, Fuliza has not only transformed the way individuals manage their finances but has also catalyzed broader economic empowerment. As Fuliza continues to evolve and adapt to changing market dynamics, its role in driving financial inclusion and fostering economic growth in Kenya remains paramount.

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