Co-op Bank customers tap Sh2.4bn overdraft for bills, shopping

Co-operative Bank of Kenya customers tapped Sh2.4 billion worth of digital overdrafts in the seven months to July, reflecting the rising demand for short-term credit to bridge cash shortfalls when paying bills and making purchases.

The lender says the digital lending product, Kamilisha, formally launched in November last year, recorded average monthly disbursements of nearly Sh400 million during the period as more customers used the facility to meet immediate financial needs.

The product allows individuals and businesses to complete transactions when funds are insufficient at a time of paying bills such as house rent, electricity, stock purchases or sending money.

Co-op introduced the overdraft product as part of its push into the growing digital short-term credit market, putting it alongside products offered by rivals including Equity Bank and Safaricom.