Central Bank of Kenya has partnered with five banks to launch a mobile loan product targeting small and medium business operators.
Dubbed Stawi, the product will give customers access to unsecured loans ranging from Sh30,000 up to Sh250,000 with repayment peroids of between one and 12 months, at an interest of 9 percent per annum.
The loans will be be managed by Cooperative Bank of Kenya, Diamond Trust Bank, KCB, CBA and NIC.
Speaking during the pilot launch of the product in Nairobi’s Gikomba market on Monday, CBK governor Patrick Njoroge said it will revolutionise the financing of micro, small and medium scale enterprises in Kenya.
"The mobile-based credit scheme is set to improve access to credit for small-to-midsize enterprises, which have been locked out of the formal credit market because of the informal nature of their records and lack of collateral for secured loans," Njoroge said.
