Over Sh50m borrowed from M-Shwari so far
What you need to know:
- A statement from Commercial Bank of Africa on Saturday said the product has so far attracted about 640,000 users, mainly the youth (26 to 35 years)
Kenyans have borrowed over Sh50 million and saved more than Sh150 million on Safaricom’s latest financial product, M-Shwari, in what the company describes as a phenomenal reception.
M-Shwari, the product of a partnership between Commercial Bank of Africa and Safaricom, allows M-Pesa users to save and borrow money.
It was launched three weeks ago with the aim of encouraging a saving culture.
A statement from CBA on Saturday said the product has so far attracted about 640,000 users, mainly the youth (26 to 35 years).
“M-Shwari’s take up so far points to what is likely to become a revolution in the financial system and is a sneak preview to the future of the rapidly changing world of mobile banking,” CBA managing director Isaac Awuondo said.
Last week, Faulu Bank — a Kenyan deposit taking microfinance institution — said M-Shwari was originally its concept and accused Safaricom of copying its idea.
The bank, which operates a similar product in partnership with Airtel Kenya, alleged copyright infringement and filed a petition in court seeking to stop the mobile service provider from operating the service.
But the High Court declined to issue interim orders before Safaricom presents its side of the story and set the first hearing of the case on Tuesday.
