There is no shortage of mobile loan apps in the Kenyan market. However, established players such as M-PESA have been in the space for some time and even launched Mshwari in partnership with CBA to tap into the lucrative space of digital loans.
The same development was seen when KCB launched a similar product with Safaricom’s largest money-maker, M-PESA. Dubbed KCB M-PESA, the service has been very attractive to a lot of people who want to get access to funds at an affordable interest rate.
Up to today, users have been furnishing loans on a 4.08% interest rate. The loans, which are offered by the lender on a monthly basis, will now see a rate jump to 7.5%. This is a significant jump that has already sparked lots of angry conversations on social media platforms.
KCB and Safaricom have not done a good job in amplifying these changes, and have not apprised customers of reasons that prompted the sharp rise in interest rates.
Hello, the interest has been updated for all KCB Mpesa customers both defaulters and those on good books . ^MK
— KCB Group (@KCBGroup) August 2, 2019
The online lending space is currently driving conversations based on its lax regulation. CBK, for instance, is said to be developing a framework that will standardize mobile loans that are insanely attractive to millions of Kenyans due to ease of access.
Nevertheless, this new rate will now match Mshwari’s (7.5%), making the two products some of the most expensive lenders around.