Banks come under pressure over expensive M-Pesa loans

KCB and Commercial Bank of Africa face consumer class-action intended to compel the lenders to cut their M-Pesa based loans in line with the new interest rate caps which took effect on Wednesday.

The two banks have insisted that their M-Pesa-linked mobile loans are not subject to the new law, which limits maximum interest chargeable on loans to not more than four per cent above the Central Bank Rate.