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Customers using the innovative mobile-phone based, micro credit and savings product 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.
Safaricom and the KCB Group’s joint partnership on KCB M-PESA merges the adaptability of the mobile money transfer platform M-PESA with reliable banking services from KCB, Kenya’s largest bank by assets.
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. This clearly indicates how mobile banking continue to significantly contribute to financial inclusion in the country.
All of the over 19 million M-PESA customers are able to access the service to by dialling *844# to access the product, see how much they can borrow and then following prompts to secure the loan which will be sent to their mobile phones instantly.
But these guys should work on reducing interest rates for their products given that the loans are payable within a short time span.