Co-op Bank has launched Kamilisha, a new digital overdraft product that gives customers access to instant credit when their account balance is low. The service allows users to complete transactions without interruption, offering up to Sh100,000 for urgent expenses such as rent, bills, school fees, or business stock. With Kamilisha, the bank is entering Kenya’s competitive short-term credit market, dominated by Fuliza and Boostika.
What Kamilisha Offers
Kamilisha operates as an unsecured overdraft facility, meaning customers do not need collateral to qualify. Limits are based on account activity and repayment history. Active customers with consistent deposits and good credit behavior qualify for higher limits over time.
When a transaction exceeds the available balance, Kamilisha automatically bridges the gap. The borrowed amount is then recovered from the customer’s next deposit. This system ensures smooth repayment without manual intervention and reduces the risk of default.
The service is designed for individuals and small businesses that need short-term liquidity. It provides financial flexibility and helps maintain daily operations without disruption.
Charges and Repayment
Kamilisha comes with a one-off access fee, a daily maintenance charge, and a small insurance fee. Borrowed funds must be repaid within 30 days of the first use. All charges are transparent and depend on the amount borrowed.
For example, if a customer uses Sh1,000 and keeps it unpaid for 30 days, the total cost is about Sh84. The figure includes the access fee, maintenance, insurance, and excise duty. This clear fee model makes Kamilisha affordable for short-term use.
How to Access Kamilisha
Customers can activate Kamilisha via the Co-op Bank Mobile App or by dialing USSD code *667#. To register, users go to the E-Loans menu, select Kamilisha, and opt in. Once activated, the overdraft becomes available for all mobile and account-based transactions.
The service is instant and fully digital. Customers can borrow and repay automatically through their accounts without visiting a bank branch. This convenience positions Co-op Bank as a key player in Kenya’s growing digital lending ecosystem.
Competing with Fuliza and Boostika
The launch of Kamilisha brings new competition to a market led by Fuliza and Boostika. Fuliza, powered by Safaricom and NCBA, has millions of active users. Boostika, offered by Airtel Money and Faulu Bank, serves a growing share of mobile money customers.
Unlike these telecom-based options, Kamilisha connects directly to customers’ bank accounts. This gives it a more formal structure, enhanced transparency, and stronger credit evaluation. It also provides better integration for customers who use both mobile money and banking platforms.
Co-op Bank’s large customer base gives it an advantage in scaling the product. With over 9 million account holders, the bank can offer flexible and affordable credit to a broad segment of Kenyans.
Benefits for Individuals and Businesses
Kamilisha benefits both individuals and businesses that experience cash flow gaps. It helps users pay bills on time, restock inventory, or handle emergencies without stress. For small business owners, it acts as a bridge between income cycles and daily expenses.
The repayment system promotes financial discipline by automatically recovering borrowed funds once deposits are made. This approach prevents customers from overborrowing while keeping credit available for future needs.
Driving Digital Innovation
The introduction of Kamilisha shows Co-op Bank’s continued focus on digital transformation and financial inclusion. Over the past few years, the bank has expanded its digital channels and introduced smart credit products to meet evolving customer needs.
Kamilisha aligns with this vision by providing quick, responsible, and affordable credit through digital platforms. It also supports Kenya’s broader goal of using technology to improve access to financial services.
By combining innovation with customer education, Co-op Bank ensures users understand how to manage short-term borrowing effectively. The bank provides regular notifications about balances, repayment dates, and responsible usage tips through its mobile app.
The Future of Short-Term Credit
Analysts believe Kamilisha will grow rapidly due to Co-op Bank’s reputation for reliability and its strong digital network. The product adds diversity to Kenya’s mobile credit landscape and gives customers an alternative to telecom-led services.
By merging formal banking with instant digital access, Kamilisha bridges the gap between traditional loans and mobile convenience. It empowers Kenyans to transact confidently even when funds run low and demonstrates Co-op Bank’s readiness to lead the next phase of digital finance in the country.
