KCB Puts Aside Ksh 30 Billion For Higher Borrowing On KCB M-PESA

The Kenyan Commercial Bank (KCB Group) has set aside 30 billion shillings to lend to Kenyans via mobile on KCB M-PESA.

“The 30 billion shillings stimulus fund will allow for higher borrowing limits on KCB M-PESA for qualifying customers,” said the lender in a statement.

The announcement by KCB Group comes a day after a meeting with the banking sector and President Uhuru Kenyatta where banks through CBK Governor Dr. Patrick Njoroge promised to help Kenyans have an easy time financially.

“The cash will be used to lend to Kenyans for the next 90 days,” added KCB. This means that Kenyans who have been borrowing cash through KCB M-PESA will have a chance to borrow at higher limits than before.

KCB Group customers with existing loans on KCB M-PESA have had their payment period extended. “We have extended repayment periods for customers with existing credit.”

This means those with existing credit have a reason to smile, especially if their repayment period was due.

“KCB Bank and Safaricom are committed to supporting customers in financial distress, making available more affordable lending and cutting transaction costs on mobile as part of the measures to assist as the country grapples with the effect of the Coronavirus pandemic,” said KCB.

The bank and Safaricom will also open the door to customers who had been blacklisted at the Credit Reference Bureaus (CRBs) but have since cleared their facility.

“We shall open credit limits to those customers who had been listed because of defaulting on small amounts, but who are now repaying their loans. Customers who need relief are advised to get in touch with us to work out the respective support areas,” said Mr. Oigara.

KCB has more than 22 million customers who borrowed KShs.212 billion in 2019 on its KCB-MPESA mobile lending platform which is operated in partnership with Safaricom.

These measures are added to the zero-rating of the bank to mobile and mobile to bank transactions in order to increase the usage of digital channels as opposed to cash in order to reduce the risk of transmitting the virus