Safaricom Lists Factors That Determine Customers’ M-Shwari Loan Limit

Kenya’s tech giant, Safaricom, has explained why some customers who save through M-Shwari may still not receive a loan limit in response to a customer’s inquiry on August 5.

The clarification came after a customer identified as Princ Raj-jr said they had been saving on M-Shwari but had never been allocated a loan limit.

“I have been saving in M-Shwari but never receive the limit,” the customer inquired.

Responding to the concern, Safaricom apologized for the delay in reviewing the customer’s account.

Why Saving Alone Doesn’t Guarantee an M-Shwari Loan Limit

The company explained that M-Shwari operates as a social collateral service, meaning loan limit reviews are carried out at the bank’s discretion.

Safaricom added that the system does not allow manual adjustment of a customer’s loan limit, even after a request has been made.

“Hi Raj-jr, sorry for the delays in reviewing your limit. Kindly note Mshwari is a social collateral service whereby a review is done at the bank’s discretion, which unfortunately doesn’t allow a manual adjustment,” Safaricom responded.

According to the company, the review considers how customers use their Safaricom line, including airtime purchases and M-PESA transactions.

The assessment also takes into account other loans linked to the customer’s national ID, including whether those loans are repaid on time, as well as a customer’s long-term savings history in both M-Shwari and other financial institutions.

Safaricom said these factors are assessed together before a decision is made on whether a customer qualifies for a loan limit and the amount that may be allocated.

“Also, other than using your Safaricom line [airtime and MPESA], other factors like loans allocated elsewhere on your ID, how timely they are repaid, and long-term savings traced in Mshwari and other financial institutions are considered,” Safaricom said in its response.

About M-Shwari?

M-Shwari is a mobile savings and loan service offered through a partnership between Safaricom and NCBA Bank and is accessible via M-PESA.

Under the partnership, Safaricom provides the technology platform, while NCBA Bank manages the savings accounts, lending services, and regulatory compliance.

The service allows customers to open a savings account directly from their mobile phones, transfer money between M-Shwari and M-PESA, and earn interest on eligible savings balances.

In addition to offering instant loans to qualifying customers, M-Shwari also enables users to save money toward personal financial goals while earning interest on their deposits.

Eligibility to Have an M-Shwari Account

To be able to save and earn interest with M-Shwari, you must be a registered and active M-PESA subscriber for a minimum of six months.

One should also be at least 18 years old.

Regular use of other Safaricom services, such as voice, data, and M-PESA transactions, also strengthens one’s eligibility.

One must also hold a valid form of identification, which can be a Kenyan national ID, a Kenyan passport, or an Alien ID (resident permit).

How to save with Mshwari

Before you can begin saving with M-Shwari, you need to activate your account. To do this, go to the M-PESA menu on your phone or open the MySafaricom App.

From there, select “Loans and Savings” and then choose “M-Shwari.” You will be prompted to activate your M-Shwari account, after which you should accept the terms and conditions.

Once this is done, you will receive a confirmation message from M-Shwari, letting you know that your account is active and ready for use.

To save with M-Shwari, follow these steps.