Safaricom has unveiled a new M-PESA-based credit service targeting thousands of micro, small, and medium enterprises (MSMEs) in Kenya in liaison with local lenders KCB, Sidian Bank and DTB.

The service dubbed, M-PESA Business Loans, will be complementing other products deployed by the tech giant seeking to enhance MSMEs' activities in the country including Fuliza Biashara, Taasi Till, and Taasi Pochi.

Safarciom said M-PESA Business Loans has been tailored to address persistent credit gaps in the market by offering "accessible, flexible, and affordable" financing options.

"We're introducing revamped Business Credit solutions built in partnership with KCBGroup, SidianBank, DTB Kenya, and digital lending platform Pezesha tailored for the traders, entrepreneurs, and small businesses that fuel Kenya’s economy," noted Safaricom Plc CEO Dr Peter Ndegwa.

He added, "With Taasi Till and Taasi Pochi, small and informal businesses can now access credit from KES1,000 to KES250,000, directly from their phones, no mountains of paperwork required."

The CEO explained that women entrepreneurs, who make up a large part of Kenya’s informal sector, grapple with unique challenges in accessing finance. Many rely on informal sources such as table banking and shylocks due to barriers such as collateral requirements and gender bias in lending. 

By providing accessible credit, through M-PESA Business Loans, Dr. Ndegwa said the company will be empowering women-led SMEs to grow their businesses, support their families, and uplift entire communities.

"At Safaricom, we are building a financial ecosystem where MSMEs can send, pay, save, borrow, and even invest. Through platforms like Ziidi, we aim to offer investment options via Pochi and till accounts, driving financial health," explained Dr. Ndegwa.

According to Safaricom Chief Financial Services Officer Esther Waititu, the telco recognizes the challenges small scale enterprises face in accessing affordable credit in the country. "We remain committed to partnering with institutions to ensure safe, convenient, and hassle-free access to credit. Through the credit propositions we are launching today, we hope to empower you to innovate and scale your businesses."

Since 2013, Safaricom has been working closely with the micro, small and medium enterprises sector to enhance their trading experience, launching a portfolio of products that have been fueling business growth. For instance, the launch of Lipa na M-PESA equipped small businesses with digital tools, enhancing growth, trust, innovation, and transparency across the value chain.

Fast forward to today, over 700,000 merchants use Lipa na M-PESA, from shopkeepers and boda boda operators to mama mbogas and wholesalers spread across the country.

[email protected]