KCB Group, Safaricom Announce Ksh 30 Billion Coronavirus Stimulus Package for Lending to SMEs

KCB Group and Safaricom have announced KSh30 billion credit facility to support individuals and businesses through the challenges of the coronavirus.

The funds are meant to keep small businesses afloat and employees in work. This will be available through KCB M-Pesa, which is operated in partnership with Safaricom.

The loan facility offers 30-day, 90-day and 180-day loans with interest rates of between two percent and six percent.

KCB Group chief executive Joshua Oigara, in a statement on Friday, said that funds will also be available for “customers who had been blacklisted at the Credit Reference Bureaus (CRBs) but have since cleared their facility”.

“We shall open credit limits to those customers who had been listed because of defaulting on small amounts, but who are now repaying their loans. Customers who need relief are advised to get in touch with us to work out the respective support areas,” said Mr Oigara, who is also the Kenya Bankers Association (KBA) chairman.

“We have a role to continue supporting the economy and stimulating growth. The best remedy as our economy starts to slow down is to support our customers to get along with their lives, and to protect jobs by providing additional lending. 

We have been in crises before, but if we pull together, even in this environment, we will get the solutions Kenya needs,” Mr Oigara said.

In 2019, mobile loans advanced via KCB M-pesa increased to KShs. 212 billion from KShs. 54 billion in 2018. The cumulative disbursement via mobile over the past five years totaled to KShs. 319 billion.