KCB raises interest rates on mobile loans

By: WINFRED KURIA

KCB has increased monthly loan interest rates on its mobile phone-based product KCB M-Pesa by two per cent on all its three repayment packages.

“Dear Customer, effective October 26th 2015, new loans on KCB M-Pesa will attract monthly loan interest of six per cent for 1 month, five per cent for 3 months and four per cent for six months,” read the text forwarded to customers.

“Lending rates have been rising, relatively, in the Kenyan banking sector based on existing market realities. As KCB, we are currently offering some of the most competitive lending rates in the market. We continue to monitor the current pressure in the economic environment to see if it is a persistent or temporal state to determine the next course of action,” Mr Joshua Oigara KCB chief executive told the Nation.

Since the launch of KCB M-Pesa in conjunction with Safaricom seven months ago, the platform has transacted over Sh1 billion in loans.

As at June, the mobile money platform had signed up 1.8 million users. Today the numbers have clocked over three million.