Customers Caught Unaware as KCB Increases Rate on KCB M-Pesa Loan

The Kenya Commercial bank (KCB) customers are a disgruntled lot after the bank has decided to increase its KCB M-Pesa rate from a 4.08 percent to a 7.5 percent, a difference of 3.42 percent.

The 3.42 percent is on instant mobile loans from KCB and is bound to affect business people majorly.

Sentiments shared on social media reveal an outcry from KCB’s mobile money platform with one user complaining of increased interest rates that have seen her part with a double interest of what she expected.

A section of Kenyans complained about having been sub lined when KCB was coming up with the decision. With the current terms, a borrower will pay to a double of what used to be the previous interest for the same amount.

On her Twitter, @Beltinah_sasi tweeted:

“Does this interest on KCB Mpesa loan cut across or it’s me pekee (alone)…Alafu (then) how do you (KCB) guys just twist this figure without having in mind safe borrowers like some of us who repay on time?” she posed.

The Bank defended themselves saying to @beltinah sasi the rate had been increased for all users but did not give further details.

@Beltinah_sasi took it further and asked “On what grounds though? That is close to double the interest I have been paying previously.”

KCB defended their move terming it as a management decision and said, ”the decision is based on management decisions. Please adjust to the new rates as you apply for the next mobile loans.

@JmoJcalmity, a twitter user posed, “Why were we not consulted. This is going to affect us and not in a positive way”, to which KCB unapologetically responded,” The service is offered by the business and the rates can be increased or reduced depending on business needs.

The new rate got into an effect on 2nd August and will now be at 7.05 percent.

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