KCB M-PESA records more than 7.9billion in loans

Customers using KCB M-PESA have transacted over Kshs.7.8 billion in loans in the twelve months since launch last year, significantly deepening financial inclusion in Kenya.

The joint initiative between Safaricom and KCB Group has recruited over 5.2 million customers in the period, with an average Kshs.660 million loans disbursed through the service on a monthly basis.

“KCB M-PESA has revolutionalised lending and redefined banking. Accessing affordable credit has never been easier and faster than it is today because of this mobile phone technology allowing customers to borrow instantly. A year after we launched this product, we firmly stand at the epicenter of transforming the financial services sector in East Africa and beyond,” said Joshua Oigara, CEO, KCB Group.

M-PESA has undergone an explosive growth since its launch in 2007. The service accounts for about 43% of the country’s GDP because more than 200 million mobile users transact through M-PESA. Most significantly, the service has been successful in reaching low-income Kenyans who spend less than Ksh 100 day. According to a report released sometimes back, the number rose from less than 20% in 2008 to 72%. Through mobile banking, M-PESA has increased reliability since users can easily access their bank accounts and transact with ease.

According to Financial Sector Deepening Report (FSD Kenya) 2016, 18 per cent of the population using new mobile banking services such as KCB M-Pesa and Mshwari, the proportion of bank account users has now risen to 38 per cent a 10 per cent increase since 2013

“Our joint initiative harnesses the transformative power of cross-industry partnerships. We believe that the mobile phone and M-PESA in particular have the ability to enhance financial inclusion service delivery to a broad set of customers who are demanding more flexibility as we enter the era of disruptive m-finance,” said Bob Collymore, CEO, Safaricom.

Safaricom and KCB Group entered into their first strategic partnership in June 2014 with the launch of their first joint proposition, Biashara Smart, which offers a suite of technology and financial solutions, geared at enabling SME’s grow to the next level.

“Our partnership leverages on our respective strengths in our different sectors. By pooling our abilities, we are able to break new ground and be more responsive to market dynamics which are to a very large extent reliant on cutting-edge ideas and technology,” said Mr. Collymore.

Erick Vateta564 Posts

--- Erick Vateta is a lawyer by training, poet, script and creative writer by talent, a model, and tech enthusiast. He covers International tech trends, data security and cyber attacks.


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