“This is a new frontier in the evolution of the mobile money journey for both institutions that will match up the best of what East Africa’s most successful mobile operator and leading bank have to offer,” said Mr Joshua Oigara, CEO, KCB Group, during the products launch in March 2015. “This product is a crucial answer to our country’s effort to empower millions of Kenyans by availing credit conveniently through their mobile phones.”
KCB M-PESA Account will see both Safaricom and KCB deepen their strategic partnership. In the last one year, said Mr. Oigara, KCB has seen its customer transactions with M-PESA triple to Kshs 125 billion, while the volume of transactions has grown from 10,000 a day to 100,000. Now, with a dedicated product, the partnership has widened the possibilities of what customers can do using their phones”.
To access the service, customers dial *844#, accept the terms and conditions and proceed to save or borrow depending on their needs. The customer’s loan limit is determined by a number of factors, including but not limited to, the amount of savings that the customer has, the customer’s usage of M-PESA, and their savings on other KCB platforms.
“With the dynamic industry and growing competitor environment, the customer is seeking more choice in mobile banking. The customer is seeking for more value and affordable mobile banking solutions in the market,” Oigara said adding that Kenyans paid bills worth Kshs.1 billion through M-PESA to KCB, deposited Kshs 59 billion and withdrew a total of Kshs 66 billion.
The latest innovation, KCB M-PESA Account, will play a crucial role in deepening financial inclusion in the country and the region.
KCB M-PESA Account Terms & Conditions
KCB M-PESA is a savings account that enables you to access instant loans up to Kshs.1M upon dialing *844#.
The KCB M-PESA Account features include:
- Minimum saving of Kshs.1 and maximum saving of Kshs.1M
- Personal accident insurance benefit based on savings
- Interest on savings of 2% p.a.
You may load your savings easily and conveniently via M-PESA, KCB Mobi, Mtaani agent and/or branch and withdraw your KCB M-PESA account savings only via M-PESA.
You can borrow instantly without saving with disbursement being to KCB M-PESA Account Loan Limits (Kshs.100 to Kshs.500,000 with a top up option)
You can choose flexible repayment periods of 1 month, 3 months and 6 months via M-PESA, KCB M-PESA Account and Mobi/Branch/Mtaani with an option of Partial payments.
The interest on the loan include:
- 30 day loan at 4% per month (4%)
- 90 day loan at 3% per month (9%)
- 180 day loan at 2% per month (12%)
The KCB M-PESA Account Fixed Deposit accounts
There are two types of fixed deposit accounts available to you as a KCB M-PESA Account holder. They include
- Fixed Savings Account
- Target Savings Account
Fixed Savings Account
This Account allows you to lock a specific amount of cash for a certain period of time.
How does it work?
- You will not be able to top-up to the amount saved.
- Locked periods include 1, 3, 6, and 12 months with minimum amount of Kshs.500.
- Upon early or premature redemption, you will forfeit all interest accrued.
- You get cash back immediately to KCB M-PESA account on prompting cash back
- You also get Life insurance benefit based on fixed deposit savings.
Target Savings Account
This account allows you to set a target and make deposits towards achieving that target.
How does it work?
- You will top up continuously until you achieve your target.
- The account is accessible with standing orders from M-PESA or KCB M-PESA Account
- You can choose from target periods of 1, 3, 6 and 12 months with minimum contribution of Kshs.50.
- You will also earn interest on cumulative interest
- You are allowed up to 4 withdrawals within target lock period to maintain interest.
- You will get cash back immediately to your KCB M-PESA account on prompting cash back
- You benefit from exciting Interest rates of 1 month (3%), 3 months (4%), 6 months (5%) and 12 months (6%)