Fuliza defaulters suffers a big blow as Safaricom directs their KCB and M-shwari account to be blocked

Kenyans who default on Fuliza repayment will now have their KCB M-PESA and M-Shwari accounts blocked, or their balances used to repay the overdraft.

According to the new set of terms and conditions, Safaricom will hold onto the user’s funds on the two accounts as collateral or security for any Fuliza loans lent and defaulted.

Fuliza is an overdraft facility offered by Safaricom in collaboration with NCBA and KCB. KCB M-Pesa is operated by KCB whereas M-Shwari is run by NCBA. Both are loan saving products available on M-PESA.

Safaricom indicates the consequences of the default as follows:


At any time after an Event of Default has occurred which is continuing, KCB and NCBA may, without prejudice to any other right or remedy granted to us under any law:
terminate the Services in accordance with clause 23 below;
declare that the Facility (inclusive all Interest, fees and charges) and all other amounts outstanding under these Terms and Conditions is immediately due and payable, whereupon you shall be required to settle the Facility with immediate effect; and
hold any of your funds standing in credit with KCB or NCBA as collateral and security for any amounts outstanding and due from you in respect of the Facility or Service. You hereby agree and confirm that NCBA and KCB is entitled in its discretion to prevent or restrict you from withdrawing in whole or in part the funds in your accounts for so long as and to the extent of the amount outstanding in respect of your Loan without KCB or NCBA giving any notice to you and/or without incurring any liability to you whatsoever in that connection.
have a right of lien and set off over funds held by you in any of your accounts with KCB or NCBA. KCB or NCBA may, without notice, set off against any amount due from any other account whether current, loan, or loans or any other type of account. A right of lien and setoff shall exist over savings and mobile saving accounts
submit information concerning the Event of Default to Credit Reference Bureaus as required under the Banking Act or any other regulatory body.
take reasonable measures including engaging an independent debt-collection agency, to recover the amount in default.
Despite the new terms and conditions, there is no denying that Fuliza has helped millions of Kenyans get an easy way for emergencies.

Ever since its inception, Fuliza has grown to become one of the most dependable financial products for many Kenyans.

It simply works by allowing users to use a specified amount of overdraft when their M-PESa balance is zero. This overdraft incurs interest every day until the repayment is made.


In the last financial year, Fuliza disbursed a total of 351 billion shillings compared to 245 billion shillings the previous year. The repayment rate stood at over 98 percent.

M-Shwari, on the other hand recorded 571 billion shillings in deposits and 94 billion in loan disbursements.

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    Written by Paul nyongesa

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