Launched in 2012, The Mobile savings and loans proposition, M-Shwari marked 5 years as Kenya’s first mobile lending and saving solution. M-Shwari has been a game-changer in the industry and today provides financial services to over 31 million customers across East Africa with M-Pawa in Tanzania, MoKash in Uganda and Rwanda
Since the inception of M-PESA in 2007, mobile money has dramatically improved the convenience, reliability, and flexibility of basic financial services. M-Shwari has continued this trend by providing a tool to manage daily cash flows therefore empowering Kenyans financially and deepening financial inclusion in Kenya.
If you look at a service like the 52 weeks savings challenge, Kenyans have been cultured to become better savers by maintaining at least 1 week of their household expenditure as well as extra change on M-Shwari. In this way, the product is not only facilitating financial inclusion but is also empowering more Kenyans to effectively manage their daily cash flows.
As part of the milestone celebration, Commercial Bank of Africa (CBA) and Safaricom will be introducing segmented pricing and enhancement to the M-Shwari customer experience.
From next week, customers who have exhibited good savings and loan repayment behaviour will enjoy improved pricing. This move is consistent with the industry direction to improve customer access and cost of credit to customers that have a positive credit history.
They will also introduce a rebate on the M-Shwari facility fee to all M-Shwari customers that repay their loans within 10 days. This means, if you pay the loan within the 10 days, you won’t be charged the interest that was initially there.
In addition to the pricing improvements, M-Shwari shall also be accessible from the MySafaricom App – which has over 1.3 million downloads so far – from the month of January next year.
— Kenyan Collective 🇰 (@KenCollective) December 6, 2017
Speaking during the event, Isaac Awuondo, Group Managing Director, CBA said: “Five years ago, we embarked on a journey into uncharted territory when we launched the first mobile-based savings and loans product in Kenya.
The true measure of success for us has been in the impact it has had on the ordinary Kenyan. M-Shwari has provided a banking service that is convenient, accessible and secure that has proved to be a very relevant substitute to the informal savings and credit alternatives that were used across the country, before its launch. M-Shwari is another Proudly Kenyan innovation, that has now been rolled out to 4 other African markets, embraced by over 31 million customers.”
He said, “These product enhancements are an illustration of investment in research, our deeper understanding of customer behaviour and benefits of leveraging technology to effectively address customer needs. Through these, we are able to make an even bigger contribution in deepening financial inclusion in Kenya.”
Sylvia Mulinge, Safaricom’s Director for Consumer Business also commented and said: “This partnership is one of the best illustrations of what two like-minded organisations can do, if they keep their focus on improving the lives of their customers. We commit to continue playing our part in ensuring that Kenya continues to be one of the best case studies for financial inclusion globally.”