Kenyans are borrowing between 25 and 30 million daily through the mobile-based KCB-Mpesa credit line, Safaricom and Kenya Commercial Bank have said.
The two firms, which jointly operate the savings and micro-credit platform, said the total loans advanced so far since the launch of the service in March 2015 was Sh10.3 billion.
Total savings currently held in the 6.4 million KCB-M-Pesa accounts have reached Sh286.1 million.
Safaricom chief executive Bob Collymore said the huge success of this mobile phone loan product highlights the value of strategic partnerships in delivering innovative solutions that are aligned to customer needs.
“Through this platform, we have been able to contribute towards driving the financial inclusion agenda. Of great significance has been its role in providing a backup plan for our customers to free them from the fear of unforeseen events,” he said.
KCB Group CEO Joshua Oigara said KCB-Mpesa platform leverages technological innovation to deliver financial products and services.
“The ubiquitous mobile phone has changed the way financial services are consumed. It has made it cheaper and more convenient for account holders to access their bank accounts,” he said.
KCB M-PESA allows registered customers to save up to Sh1 million and earn interest of up to six per cent.
Account holders can also access up to Sh1 million in instant loans. Other mobile banking platforms such as M-shwari only give loans valued at between Sh100 and Sh20,000 depending on one’s savings, while Equitel allows users to borrow up to Sh3 million.
M-shwari was launched in 2012 in a partnership between Safaricom and Commercial Bank of Africa, while Equitel was launched by Equity Bank in July 2015.
According to a 2016 report by Financial Sector Deepening on financial access, about 18 per cent of the population are using mobile banking services daily.