M-Shwari loan charge not interest, CBA tells customers

The Commercial Bank of Africa (CBA) says it will not reduce the facilitation fee it charges on M-Shwari despite pressure from a consumers lobby, saying the charge is not interest and therefore does not fall under those affected by the Banking Amendment Act 2016.

The Consumers Federation of Kenya (Cofek) on Thursday gave KCB and CBA a 48-hour ultimatum to reduce interest charged on their mobile phone-based loans to a maximum of 14.5 per cent interest rate per year or face legal action.