In January 2016, Commercial Bank of Africa announced it had applied for a license from the Central Bank of Uganda with the view of launching a savings and loans mobile service in collaboration with MTN. The service was to be modelled on its successful M-Shwari service which launched in Kenya in 2012. M-shwari allows customers to save money from M-Pesa to a bank account without actually going to the bank to open an account. Users are able to save money from as low as 1 shilling and credit of as low as 100 shillings.
In early August, CBA announced the launch of MoKash, a product that will be exclusive to registered MTN Subscribers. The solution allows users to borrow from as low as UGX 3,000 (Kshs. 90) to a maximum of UGX 1,000,000 (Kshs. 30000) at an interest rate of 9%. Subscribers can also save on the service, earning interest rates of between 2-5% on their deposits. The minimum amount one can deposit is UGX 50 (Kshs. 1).
According to Business Daily, MoKash has witnessed massive growth with the service registering 600,000, 2 months after launch. MoKash is now giving 2,000 loans a day with the average loans being UGX 18,000 (Kshs. 538). To take the services, MTN Uganda subscribers dial *165*# and then select MoKash. They will then select loans and choose the option to request a loan. CBA also has a similar product in Tanzania called M-Pawa launched in collaboration with Vodacom.
