The Co-operative Bank of Kenya has unveiled a digital overdraft facility aimed at enabling customers to overdraw their accounts by up to Sh100,000 to complete transactions.
Dubbled Kamilisha, the product targeting to boost business operations, especially for small businesses, places it in direct competition with Safaricom’s market-leading Fuliza and Equity Bank’s Boostika service.
In a statement, the lender confirmed the service is designed for both individuals and businesses, enabling them to complete payments for essentials like rent, utilities, and stock purchases when their account balances are insufficient.
“The overdraft service allows you to complete transactions when you don’t have enough money in your bank account. It bridges the shortfall between what you have and what you need to pay,” the bank said.
According to the bank’s official terms, the Kamilisha facility is structured as a short-term loan with a maximum repayment period of 30 days from the first use.
Funds are automatically recovered from any subsequent deposits made into the customer’s account.
The bank, based on a customer’s account activity, including salary deposits and business turnover, determines eligibility and overdraft limits.