This archive report was first published on 13 September 2019.
Published on September 13, 2019, a report by the Kenya Bankers Association shed light on the mobile loan market in Kenya, revealing the most costly and cheapest mobile loans in the country.
At the top of the list is Okoa Stima, a product offered by Safaricom on its M-Pesa platform, which charges a staggering 43.4% monthly interest. This is the most expensive mobile loan in Kenya, leaving many consumers worried about the high costs.
Other expensive mobile loan products include Kopa Chapaa, operated by Faulu Kenya and Pesa na Pesa, owned by the AVLC Group. Kopa Chapaa charges a monthly interest rate of 38.8%, while Pesa na Pesa comes in third with an interest rate of 30.4%.
On the other hand, mainstream lenders such as Kenya Commercial Bank Group and Commercial Bank of Africa (CBA) through their platforms KCB M-Pesa and M-Shwari respectively, price their loans at a rate of 7.5% a month, making them the cheapest option.
Here is the list of expensive and cheap mobile loans in Kenya:
- Okoa Stima - 43.4%
- Kopa Chapaa (Faulu) - 38.8%
- Pesa na pesa (AVLC Group)
- Pesa Pata - 30.4%
- Kenya Commercial Bank Group and CBA - 7.5%
