KCB relaunches M-Pesa loans with zero interest options

KCB has relaunched KCB M-Pesa loans, small value short-term loan product, with zero interest option along with allowing customers to top-up to their current outstanding loans and roll over loans past the one month.

KCB M-Pesa was launched back in March 2015 in partnership with Safaricom, and they are available from the Safaricom SIM toolkit.  The re-launch came after the migration of the service on to a new platform in partnership with Huawei that will process transactions faster and which is more stable.

KCB CEO Joshua Oigara said that the bank was disbursing Kshs 7 billion worth of loans through mobile, an amount that used to be disbursed over six months at their traditional branches. He announced that the platform improved would bring three new changes to the loan product namely; automatic roll forward of loans if a customer was not able to repay in thirty days, customers could not top-up loan until they reach their credit limits(previously they had to repay an existing loan, in order to qualify for a new ones) and customers will pay zero percent (0%) loan interest if they repay loans on the same day. The zero interest loan offer runs from December 18, 2018, to 17 January 2019 and during this period, customers will be able to enjoy one interest-free loan per week as long as the loan is repaid by midnight of the same day.

Also present at the launch were CEO of Safaricom, Bob Collymore, and Kenya’s Cabinet Secretary for ICT, Joe Mucheru.

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