Kenyan operator Safaricom and KCB Bank have formed a partnership to allow M-Pesa agents to access a KSh1.5 billion unsecured loan facility, though the loans will be repayable at 20 percent interest.
With the new proposition, named M-Pesa Agent Mkopo na KCB, M-Pesa agents will have the ability to borrow a maximum of six times their average M-Pesa commissions over a six-month period.
The minimum amount that can be borrowed will be set at KSh50,000 and the maximum KSh5 million. An interest rate of 20 percent will be applicable on the loans, repayable over 12 months.
Bob Collymore, chief executive of Safaricom, said: “M-Pesa Agent Mkopo na KCB deploys the best of both the banking and telecommunications sector in a manner that offers value to our agents and our customers.
“Through this partnership, I believe we now have an effective solution to the challenges around float shortages.”
Joshua Oigara, KCB Group’s Chief Executive, said: “The foundation of KCB’s business is built upon the entrepreneurial spirit of small and medium sized business owners throughout East Africa.
“Our partnership will play a big role in expanding economic opportunities for our customers and this will help create more jobs.”