Of all the mobile money lenders, KCB Mpesa was King, with a borrowing cost so close to the heart of the Kenyans, that frequenting the platform became the best available option. A one-month loan attracted an interest worth 4.08% with an exercise duty applicable on negotiation fees. That means if one borrowed Ksh 4000 they would repay it back as Ksh 4163.20
Unfortunately, KCB Mpesa customers will be forced to pay more for any loans they borrow starting 2 August 2019 henceforth. All the consumers of the previous loans might have to calculate what they are willing to part away with if they ever think of borrowing from the platform.
“Dear Customer, your next KCB Loan will be charged at 7.5 of the amount borrowed, to be repaid after 30 days,” read the message to KCB M-Pesa customer.
But this unexplained disruptions in their mobile money did not augur well with a good number of its customers who felt that increasing the interest rate was uncalled for especially for borrowers who repay their loans on time.
Hi folks @KCBGroup
Does this interest on KCB Mpesa loan cut across or its me pekee…Alafu how do you guys just twist this figure without having in mind safe borrowers like some of us who repay on time? pic.twitter.com/ycRNPM720H
— Beltinah Sasi (@beltinah_sasi) August 2, 2019
Under the current terms, if one borrowed Ksh 4000, they will repay it back as Ksh 4300.20 as the interest rate. Responding to the reaction, KCB Mpesa notified its customers via twitter that the interest has been updated for all KCB Mpesa customers both defaulters and those on good books with the decision is based on management encouraging the customers to adjust to the new rates as they apply for the next mobile loans.
These changes put KCB MPesa at per with the Safaricom’s Mshwari charges rated at 7.5 per cent interest. Other mobile loan lenders like Barclays’ Timiza charge 6.17 per cent.