Safaricom's MPESA sign deal with KCB to boost mobile loans

Just slightly over two years since Safaricom partnered with CBA bank to launch M-shwari mobile based savings and loans service, they have entered into yet another such partnership this time with KCB.Mshwari was an instant success offering loans of up to Ksh 5,000 but later reviewed that to Ksh 8,000. The new KCB Mpesa mobile banking service offers loans at between four percent to 12 percent.

The Mobile credit service was launched  on 10th March 2015 and will offer customers loans of  between kes 50 and kes 1,000,000 payable in one to six months. Mobile banking has become a cut throat field with banks going for the jagular in this very competitive and lucrative arena. KCB has announced that transactions had moved from 10,000 daily to 100,000 transactions and transaction amounts hitting the 125 billion mark last year. Recently Bill gates lauded MPESA for bridging the gap between the haves and have nots, the banked and unbanked. 

CBA announced that it gives upto 50,000 loans a day. Currently due to that statistic its savings account stands at 153 billion and its loan account at 29 billion. CBA recently hit the 10 million mark in customer base.

In an interview with Citizen business Center presenter Terryanne Chebet, the CEOs of the two Corporates Bob Collymore Safaricom and Joshua Oigara who is group ceo KCB shied away from the all too common question of revenue share. However Bob did say that since KCB are taking the risk and Safaricom providing the technology, KCB was taking home the Lion share.
Lately banks have been running to MNOs for margers in mobile banking solutions that have brought about financial inclusion to the critical mass.
Safaricom has already been in three partnerships of Convenience. First with Equity bank when they first launched the MKESHO mobile banking service. Unfortunately it did not las long because the two parties did not agree on a revenue share model. Safaricom later shifted gear and partnered with CBA bank for the MSHWARI mobile banking service. This was an instance success. KCB MPESA is the latest Partnership that Safaricom has entered into, this time with KCB bank.