Safaricom and KCB have today announced that they have set aside billions of shillings that will be made available for people to lend.
The companies have set aside Kshs 30 billion “stimulus fund” that they aim to lend to KCB MPESA customers during the next 90 days.
https://twitter.com/KCBGroup/status/1240976952447598594
This announcement follows a meeting which was hosted by the President on Wednesday which had brought together the banking industry players.
“KCB Bank Kenya and Safaricom have committed to support customers in financial distress, making available more affordable lending & cutting transaction costs on mobile as part of the measures to assist as the country grapples with the effects of the coronavirus pandemic,” the companies said.
The companies said that the 30 billion stimulus fund will allow for “higher borrowing limits” on KCB MPESA for customers that quality and will offer extended repayment periods for borrowers with existing facilities.
https://twitter.com/KCBGroup/status/1240976964363718658
Interestingly enough, KCB and Safaricom said that they will open credit limits to those customers that had been listed because of defaulting on small amounts but are now repaying their loans.
This news follows the domino effect of the coronavirus that has led the Central Bank of Kenya asking banks to extend borrowers’ repayment of loans by up to a year due to the coronavirus pandemic. The Central Bank has also allowed Safaricom to boost their MPESA transaction limits as well as waiving fees on some MPESA bands.
