Mokash, the M-Shwari Equivalent in Uganda has 600,000 Users in 2 Months of Launch


MTN MoKash

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.

Previous articleFocus Areas for African Women and Girls in Tech to be Empowered
Next articleYou can now Schedule Your Uber Ride in Kenya
Eric writes on business, govt policy and enterprise tech.