This archive report was first published on 12 December 2019.
Published on December 12, 2019, a report highlighted the significant growth of M-Shwari, a mobile-based lending platform operated by NCBA bank and Safaricom.
With over 31 million Kenyans having taken a loan on the platform, M-Shwari has disbursed loans worth Sh. 430 billion over the past seven years.
As of the report's publication date, the mobile platform had more than 450,000 customers with savings under the M-Shwari Lock account, with an average savings of Sh. 8,981 for an average of seven-and-half months.
According to the report, M-Shwari charges a facilitation fee of 7.5 percent of the loans, which are repaid in one month, taking the annualised cost of borrowing from the platform to a rate of 90 percent.
NCBA chief executive officer John Gachora attributed the platform's success to its provision of a convenient and secure solution, contributing to the economy by promoting inclusion planning and empowering customers to effectively manage their cash flow.
NCBA bank, a merged entity of former banks NIC and CBA, reported a 17.3 percent net earnings growth to Sh. 7.7 billion in the nine months ended September.
