This archive report was first published on 18 November 2019.
November 18, 2019, marked a significant milestone in Kenya's financial industry with the launch of Stawi, a digital loan app that offers unsecured loans to micro, small, and medium enterprises.
Stawi was launched by the government of Kenya through the Central Bank of Kenya (CBK) in partnership with five commercial banks: Kenya Commercial Bank (KCB), Commercial Bank of Africa (CBA), NIG Group PLC, The Cooperative Bank of Kenya, and Diamond Trust Bank Kenya (DTB).
The app offers loans ranging from KES 30,000 to KES 250,000, with an interest rate of 9% per annum. The repayment period ranges from 1 to 12 months, depending on the loan amount and the borrower's credit score.
To register for Stawi, businesses must meet certain requirements, including having a registered mobile number, email address, and Kenyan ID or valid passport. The business must also have been operational for at least 6 months and have a turnover of between KES 30,000 and 250,000.
Once registered, businesses can apply for a loan through the Stawi app, which is available for download on the Google Play Store. The application process is simple and quick, and the loan is disbursed to the borrower's mobile money wallet after various loan charges and fees have been deducted.
Stawi has revolutionized the way businesses access loans in Kenya, offering a fast and convenient solution to the traditional banking system. With its user-friendly interface and competitive interest rates, Stawi is set to become a major player in Kenya's financial industry.
