Co-op Bank Kamilisha: The Overdraft That Completes Your Transaction
By Arnold Ochieng · Co-operative Bank Kenya hub · paybillke is an independent guide and is not affiliated with Co-operative Bank Kenya.
Kamilisha is a Co-op Bank overdraft that completes a payment when your account is short. You do not apply for it: when you try to pay a bill or send money and the balance will not cover it, the app offers to bridge the gap. The limit runs from KES 1 to KES 100,000, and it costs a 2% access fee upfront plus 0.2% a day on what is outstanding. You have to opt in first, on *667# or *557#.
What it actually is
Most loans start with you asking. Kamilisha starts with a payment you were already making. You go to buy KPLC tokens or send money to M-PESA, the balance falls short, and a prompt asks whether to complete it with Kamilisha. It shows the shortfall and the fees before you agree, the payment goes through, and you get a confirmation SMS. There is no separate application. That convenience is the product, and it is also the thing to watch, because a facility you use without deciding to is easy to use often.
Who can get it
Co-op lists it for both personal and business customers who are registered on mobile banking, hold an active Co-op account, have opted in, and meet the bank's eligibility rules. Joint accounts, savings accounts and minor accounts are not eligible. Your limit is set from your own account behaviour, salary deposits or business turnover, and Co-op says it is refreshed monthly.
How to opt in
Dial *667# or *557#.
Go to E-Loans.
Select Kamilisha Opt In.
Read and accept the terms and conditions.
Confirm. The limit is active immediately.
Or from the app
Log in to the Co-op Bank app or web banking.
On the home page, go to the Accounts section.
Tap Activate Kamilisha on the account card.
Accept the terms and confirm.
How to opt out
Dial *667# or *557#, go to E-Loans, select Kamilisha Opt Out and confirm.
Or in the app, tap the three dots on the account card and select Opt-Out Kamilisha.
You can opt back in later. Your limit is reassessed when you do.
What it costs
Four charges, and only one of them is a daily one. A 2% access fee on the amount borrowed, charged upfront. Excise duty on the fee, charged upfront. Insurance at 0.034% per month, recovered upfront. Then a daily maintenance fee of 0.2% on whatever is still outstanding at the end of each day. The upfront three are fixed the moment you use it. The daily one is the one that grows, so the cost depends almost entirely on how fast the balance clears.
Co-op's own worked example, borrowing KES 1,000
Charge
Amount (KES)
Access fee, 2%
20.00
Excise duty
4.00
Insurance, 0.034% a month
0.35
Daily maintenance, 0.2% of the outstanding balance
2.00 per day
What KES 1,000 costs depending on how long you hold it
Cleared after
Total cost (KES)
As a share of the KES 1,000
Same day
26.35
2.6%
15 days, the business limit
54.35
5.4%
30 days, the salaried limit
84.35
8.4%
Read that second table before you use it
Those figures are Co-op's published rates applied to the full period, assuming the whole balance stays outstanding the entire time. Clearing on the same day costs KES 26. Carrying the same KES 1,000 for a full month costs KES 84, more than three times as much, because the daily fee runs to KES 60 of it. Nothing about the facility changes between those two rows except time. In practice you will often pay less than the table shows, because repayment is automatic and any money entering the account starts clearing the balance.
How repayment works
It is automatic and you cannot schedule around it. Any credit into your Co-op account goes to the outstanding Kamilisha balance first: salary, customer payments, M-PESA transfers in, branch or Co-op Kwa Jirani agent deposits, anything. The repayment window is a maximum of 30 days for salaried customers and 15 days for business customers. You can repay early, in part or in full, and the daily fee stops growing when the balance does.
What happens if you do not clear it
You cannot access new Kamilisha funds until the balance is cleared, and the limit is restored once you have fully repaid. Co-op also notes that repayment behaviour affects your standing with the bank and your ability to access other facilities, which is the normal position for a credit product.
Why a Kamilisha request gets declined
Co-op lists the common reasons: you have not opted in, your account is irregularly overdrawn, you have arrears on another bank facility, your CRB status does not meet the requirement, the transaction type is not supported, you have exceeded your limit, or the account type is not eligible. Kamilisha can run alongside other E-Credit products such as a salary advance, but not while any of them is in arrears.
How it compares to a mobile overdraft
Kamilisha sits in the same place in your life as an M-PESA overdraft: it completes a payment you were already making rather than giving you cash. The difference is which account it runs on and how the pricing is built. If you are weighing the two, our Fuliza guide covers the M-PESA side with its current fee table, and the Fuliza calculator works out a specific amount. Compare on the same borrowed amount and the same number of days, because a facility that looks cheap per day is not cheap if it sits outstanding for a month.
Using it well
It is genuinely useful when a payment must go through now and the money is arriving shortly, which is the case it was built for. It is expensive when it becomes the way you get to month end. The single lever you control is the daily fee, so clear it as soon as a credit lands.
Frequently asked
What is Kamilisha Transaction?
A Co-op Bank overdraft that completes a bill payment or transfer when your account balance is short. The prompt appears during the transaction, not as a separate application.
How much can I get?
From KES 1 to KES 100,000. Your own limit is set from your account activity, salary deposits or business turnover, and Co-op refreshes it monthly.
How do I opt in?
Dial *667# or *557#, go to E-Loans, select Kamilisha Opt In, accept the terms and confirm. You can also activate it from the Accounts section of the Co-op Bank app.
What does Kamilisha cost?
A 2% access fee plus excise duty and insurance upfront, then 0.2% a day on the outstanding balance. On KES 1,000 that is about KES 26 if you clear the same day and about KES 84 if you hold it for 30 days.
How long do I have to repay?
A maximum of 30 days for salaried customers and 15 days for business customers. Repayment is automatic from any money entering your account.
Can I use it for M-PESA?
Yes. Co-op lists send money to an M-PESA wallet and bill payments such as KPLC prepaid tokens among the supported transactions.
How do I opt out?
Dial *667# or *557#, go to E-Loans, select Kamilisha Opt Out and confirm, or use the three dots on your account card in the app. You can opt back in later.
Why was my Kamilisha declined?
Common reasons are not being opted in, arrears on another Co-op facility, an irregularly overdrawn account, CRB status, exceeding your limit, an unsupported transaction type, or an ineligible account such as a joint, savings or minor account.