The Co-operative Bank of Kenya has rolled out a new unsecured digital overdraft service called Kamilisha, designed to help customers complete transactions even when their account balances fall short. The launch directly pits Co-op Bank against Equity Bank’s Boostika and Safaricom’s Fuliza, two of Kenya’s most popular short-term credit products.
Under the new facility, customers can overdraw their accounts by up to KSh 100,000, allowing them to pay bills, settle rent, purchase stock, or transfer funds despite temporary cash shortages.
“If you don’t have enough money in your account, you can still carry out transactions through Kamilisha. It bridges the gap between what you have and what you need to pay,” Co-op Bank explained in a statement.
Loan Costs and Fees
Kamilisha carries a 2% one-time access fee on the borrowed amount, a daily maintenance fee of 0.2% on any outstanding balance, and a monthly credit life insurance premium of 0.034%. The service also attracts a 20% excise tax on access fees, in line with Kenyan tax laws.
For instance, borrowing KSh 1,000 would cost a user roughly KSh 84.34 in total fees if the balance remains unpaid for a month. This includes KSh 20 in access costs, KSh 4 in excise tax, KSh 0.34 for insurance, and KSh 2 daily maintenance, translating to an effective monthly interest rate of about 8.4%.
How It Compares
With its entry into the digital credit market, Co-op Bank joins a competitive space dominated by Fuliza and Boostika. Equity’s Boostika currently charges around KSh 85 monthly on a KSh 1,000 loan—factoring in a 5% processing fee, 1% insurance charge, and 20% excise duty. Safaricom’s Fuliza, meanwhile, costs users KSh 6 per day on the same amount, totalling KSh 180 per month.
Like its rivals, Kamilisha loans come with a one-month repayment period.
This move signals Co-op Bank’s aggressive push to expand its digital credit offerings and capture a share of Kenya’s fast-growing mobile lending market, where convenience, flexibility, and instant access to funds increasingly define customer loyalty.
