Co-operative  Bank Launches ‘Kamilisha’ Digital Overdraft to Compete with Fuliza and Boostika

The Co – operative Bank of Kenya has rolled out a new unsecured digital overdraft facility dubbed “Kamilisha”, marking its official entry into the fast-growing digital credit market. The product is designed to rival similar services such as Safaricom’s Fuliza and Equity Bank’s Boostika, offering customers seamless access to short-term credit

According to the bank, Kamilisha allows both individuals and businesses to complete transactions even when their accounts have insufficient funds. The overdraft limit extends up to KSh 100,000, enabling users to pay bills, make transfers, or complete purchases without disruptions

The pricing structure features a 2% one time access fee on the borrowed amount, a 0.2% daily maintenance fee on the outstanding balance, and a 0.034% monthly credit-life insurance premium. In addition, the access cost attracts a 20% excise duty

For example, a customer who overdraws KSh 1,000 and holds the amount for a full month could incur about KSh 84.34 in total charges  an effective monthly cost of roughly 8.43%

Analysts view this move as a strategic step for Co-op Bank to tap into Kenya’s expanding digital credit ecosystem, where demand for flexible, short-term financing continues to surge.

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By introducing Kamilisha, the bank aims to strengthen its competitive edge and broaden its digital banking offerings

The launch also coincides with Co-op Bank’s ongoing expansion drive, including the recent opening of a new branch at Imaara Mall, signaling the lender’s commitment to increasing accessibility and customer reach

Writer : Mweru Mbugua