In Summary
  • The advances will be charged an interest from two per cent per month, depending on the repayment period and a customer’s credit rating.
  • Safaricom chief executive Bob Collymore said the partnership is part of the company’s plans to increase the impact of M-Pesa on the lives of Kenyans.
  • The new deal is an extension to a partnership launched by the two companies last year to ease access to financial services.

It will now be possible to get a loan of up to Sh1 million through your phone thanks to a deal signed between Safaricom and Kenya Commercial Bank Group on Tuesday.

The bank will extend loans of between Sh50 and Sh1 million to Safaricom customers registered on M-Pesa.

The advances will be charged an interest from two per cent per month, depending on the repayment period and a customer’s credit rating.

The deal mirrors a similar deal between Safaricom and Commercial Bank of Africa, M-Shwari which hit 10 million customers last week.

CRUCIAL ANSWER

“This product is a crucial answer to our country’s effort to empower millions of Kenyans by availing credit conveniently through their mobile phones,” KCB group chief executive officer Joshua Oigara said.

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