- Maisha MFB becomes the first telco-backed microfinance to launch a savings and mobile money solution in the market and the fourth financial institution, alongside banks like CBA, KCB and Equity.
Maisha Microfinance Bank (Maisha MFB) in partnership with Airtel have rolled out a mobile money savings and loan product targeting registered Airtel Money subscribers.
Maisha MFB becomes the first telco-backed microfinance to launch a savings and mobile money solution in the market and the fourth financial institution, alongside banks like Commercial Bank of Africa (CBA), Kenya Commercial Bank (KCB) #ticker:KCB and Equity #ticker:EQTY.
Maisha MFB chief executive Ireneus Gichana said that prior to its launch in Nairobi Tuesday, the product had undergone a 45-day pilot period to ensure that it was running smoothly.
During the piloting period, the microfinance opened over 50,000 new accounts through M-Fanisi, with Mr Gichana saying that about 20,000 of these accounts have accessed loan facilities through the product.
“Up to 2,000 loan applications are made on a daily basis through M-Fanisi and this product marks Maisha as the first microfinance bank in Kenya to successfully roll out a telco-backed, mobile- based loans and savings product,” Mr Gichana said during the launch.
Approved loans are repayable within seven, 14 and 30 days at a one-off facility fees of three per cent, five per cent and 7.5 per cent respectively with excess duty applicable on the fees.
One can also open a fixed deposit account for a period of one to 12 months and earn interest of 8.5 per cent to 11.25 per cent per annum, depending on period.