With access to credit growing, Kenya shifts momentum to affordability – Business Daily
A mobile subscriber transacts via M-Pesa at a shop in Nyeri on May 20, 2021. PHOTO | JOSEPH KANYI | NMG
Kenya has made massive progress in broadening access to credit. The number of loan accounts in the country currently exceeds 20 million, having grown from 600,000 15 years ago.
Kenya’s rapid success in growing access to credit is proof of the transformative power of the mobile phone and what can be achieved through customer-focused services such as M-Pesa.
With more than 30 million customers, 262,000 agents and 492,000 businesses, M-Pesa provides an ecosystem and distribution platform that enables different partners such as banks and co-operative societies to reach any customer with credit and savings offerings wherever they may be in the country.
Since 2010, more than 40 financial institutions have integrated directly into M-Pesa providing their customers with convenient and affordable access to their services 24 hours a day.
Equally, forms of credit are evolving from simple solutions to more advanced solutions such as Fuliza and Lipa Mdogo Mdogo. More importantly, we see another shift towards more affordable credit solutions. We also see a huge demand for credit solutions tailored to the needs of businesses. We have come together once more with NCBA and KCB as long-time partners to tackle the challenge of affordable credit. Beginning 1st October 2022, we reduced our Fuliza daily fees by 50 percent.
Customers accessing Fuliza facilities of Sh1,000 and below now enjoy free daily fees for up to three days. This means a customer repaying their Fuliza facility within the three-day period will not incur a daily fee. Reduced Fuliza fees will enable current customers to access more of the facility at a lower cost while equally bringing in new customers.
This is the first step towards addressing access and affordability. Later, in November, Safaricom, NCBA and KCB will unveil a credit repair scheme that will provide 4.5 million customers with an opportunity to get delisted from credit reference bureaus, empowering them to once again access credit.
President William Ruto’s government has prioritised access to affordable credit. More affordable credit, a long sought-after goal for many in the country, is now turning into reality thanks to the support that the government is providing to the different players.
