M-Shwari Clarifies Loan Recovery Process: Why Your ID, Not Your Phone Number, Matters

M-Shwari has clarified that its loan recovery process is anchored on a customer’s national identification details rather than their mobile phone number, a move aimed at addressing growing concerns around recycled SIM cards and liability for loans taken by previous users.

According to the mobile lending platform, all M-Shwari loans are managed at the ID level, meaning that borrowing, repayment, and any recovery actions are tied to the identification document used during registration. The phone number, while important for access and communication, is secondary to the customer’s ID.

This approach ensures that customers who default on loans cannot evade repayment by simply changing or acquiring a new phone number. If a defaulter later registers a new SIM card under the same ID, M-Shwari retains the right to recover outstanding amounts through the newly registered line or any other accounts associated with that ID.

At the same time, M-Shwari has sought to reassure Kenyans who may receive recycled phone numbers—numbers previously used by other subscribers. The lender emphasised that new users of recycled lines are not responsible for loans taken by former owners of those numbers. Any unpaid loan obligations remain firmly linked to the original borrower’s ID, not to the phone number now in use.

The clarification also extends to Credit Reference Bureau (CRB) listings, which M-Shwari says are strictly ID-based. This means missed payments, defaults, or negative credit listings follow the borrower’s identification details and do not transfer to a new user of a recycled SIM card.

In line with standard banking practice, M-Shwari further noted the bank’s Right of Lien, which allows it to recover outstanding loan balances from any account held under the same ID. This provision applies across accounts linked to the customer’s identification and is intended to protect the lender from deliberate default.

To help customers stay informed, M-Shwari is encouraging users to regularly check which phone numbers are registered under their ID. Customers can do this easily by dialing *106#, a step the lender says is important in managing accounts and avoiding disputes.

The clarification comes amid increased public conversation around mobile lending, digital credit, and consumer protection, as Kenyans continue to rely on mobile-based financial services for everyday borrowing and transactions.

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