We computed the luminosity of simulated galaxies of the C-EAGLE project, a suite of 30 high-resolution zoom-in simulations of galaxy clusters based on the EAGLE simulation. The AB magnitudes are derived for different spectral bands, from ultraviolet to infrared, using the simple stellar population modelling based on the E-MILES stellar spectra library. We take into account obscuration due to dust in star forming regions and diffuse interstellar medium. The g - r colour-stellar mass diagram, at z = 0.1, presents a defined red sequence, reaching g - r ≃ 0.8, 0.05 dex redder than EAGLE at high masses, and a well populated blue cloud, when field galaxies are included. The clusters' inner regions are dominated by red-sequence galaxies at all masses, although a non-negligible amount of blue galaxies are still present. We adopt Bayesian inference to compute the clusters LFs, testing for statistical significance of both single and double Schechter functions. The multicolour LFs at z = 0 show a knee luminosity that peaks in the infrared and increases with the cluster's mass. The faint-end is weakly dependent on colour and mass and shows an upturn in the optical, bounded between -1.25 and -1.39, just moderately steeper than the field. The simulations reproduce, within the observational errors, the spectroscopic LFs of the Hercules and Abell 85 clusters, including their faint end upturn. C-EAGLE LFs are in broad agreement with observed LFs taken from SDSS and XXL surveys, up to z = 0.67, showing a rather flat faint end when the observational constrains are taken into account.