While marking the 5th anniversary of M-Shwari, Commercial Bank of Africa (CBA) and Safaricom have revealed that the offering now has 21.1 million Kenyans.
Launched on 27th November 2012 through a strategic partnership between Commercial Bank of Africa (CBA) and Safaricom, M-Shwari is a paperless banking that allows M-PESA customers to save and borrow money through their phones. A fee of 7.5% is levied for each loan each month.
As part of the milestone celebration, M-Shwari will be introducing some new features;
- Introduction of segmented pricing; From next week, customers who have exhibited good savings and loan repayment behaviour will enjoy reduced interest rates citing “industry direction to improve customer access and cost of credit to customers that have a positive credit history.”
- Introduction of a partial refund on the M-Shwari interest rates to all customers that repay their loans within 10 days.
- In addition to the pricing improvements, M-Shwari shall also be accessible from Safaricom’s mobile application.
M-Shwari has now been rolled out to 4 other African markets with over 31 million customers according to Isaac Awuondo, Group MD at CBA. More than Sh 230 billion has been disbursed in loans over the 5 years. Savings by customers currently stand at more than Kes. 12.6 billion.