CBK blocks interest-free Lipa na M-Pesa loan plan

Central Bank of Kenya Governor Patrick Njoroge. PHOTO | SALATON NJAU | NMG

The Central Bank of Kenya (CBK) blocked the launch of a Safaricom-backed zero-interest credit service for purchase of goods, derailing a product that was expected to disrupt the mobile loans market.

Three people familiar with the matter say the CBK asked the promoters of the interest-free product known as Faraja to stop its release, just hours before the planned unveiling.

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