As the Kenyan government implements precautionary measures against COVID-19, for the first time in history, digital lenders are going slow on borrowers thanks to the deadly virus. The Central Bank together with some commercial Banks have been, have waivered fees for mobile transactions and increased their loan limits to cushion Kenyans against this tough economic times.
So as to contribute to economic measures that Kenya has taken to contain the spread of coronavirus in the country, borrowers on NCBA Group mobile lending platform, M-Shwari, have been granted a month’s relief on late payment penalty. The platform which is powered by Safaricom’s M-Pesa, will not be charged additional 7.5 per cent fees if they roll over debt to the following month, NCBA and Safaricom said in a joint statement on Thursday.
Also Credit Reference Bureau listing of M-Shwari customers will be suspended for the next 90 days as NCBA and Safaricom will continue engaging and working with customers during this time to ensure they can manage loan repayments,
“We would like to urge customers to be responsible with the credit solutions to ensure that as a collective we care for each other during this tough time. The bank shall through M-Shwari, continue to responsibly support all customers through this difficult period,” said NCBA Group chief executive John Gachora said in the statement.
Mshwari, the country’s first mobile lending app to come to life in 2012, has been a knight in shining armour with instant short-term credit for families and micro and small-sized businesses, repayable within a month.