Co-operative Bank Enters Digital Lending War With Bold ‘Kamilisha’ Overdraft to Challenge Fuliza

The Co-operative Bank of Kenya has stepped into the fiercely competitive digital credit arena with the launch of Kamilisha, a new overdraft facility designed to let customers overdraw their bank accounts by up to Sh100,000. The move is seen as a direct assault on Safaricom’s Fuliza and Equity Bank’s Boostika, two of Kenya’s dominant mobile lending platforms.

In a statement on Wednesday, the lender said the innovative product aims to cushion customers from financial shortfalls by allowing them to complete urgent transactions even when their balances run dry. The overdraft will cater to both individual and business customers, particularly small and medium-sized enterprises (SMEs) that often struggle with cash flow gaps.

“Kamilisha allows you to complete payments when you don’t have enough in your account. It bridges the shortfall between what you have and what you need to pay,” Co-operative Bank said in its announcement.

Unlike conventional loans, Kamilisha operates as a revolving digital overdraft, giving customers instant access to funds through the bank’s mobile and online platforms. The bank will determine borrowing limits based on account activity, regular deposits, salary inflows, and business turnover — a move intended to balance credit access with responsible lending.

Borrowers will have up to 30 days to clear the overdraft, after which any incoming deposits will automatically offset the outstanding balance. The product’s simplicity and automation are expected to attract a growing number of Kenyans who are increasingly relying on digital solutions for their daily financial needs.

The entry of Co-operative Bank into this space marks the latest escalation in Kenya’s fast-evolving fintech rivalry, where traditional lenders are racing to catch up with mobile platforms that have long dominated short-term lending. Fuliza, which is jointly operated by Safaricom, NCBA, and KCB, has been a market leader since its debut in 2019, processing billions in microloans each month.

Analysts say Co-operative Bank’s Kamilisha could reshape the digital credit landscape by leveraging its vast customer base of SACCO members, salaried workers, and business owners who already rely on the bank’s ecosystem for savings and trade finance.

With Kamilisha now live, the battle for Kenya’s digital borrower has officially intensified — and the Co-op Bank appears determined to prove that homegrown innovation can compete head-to-head with fintech giants.