Most expensive and cheap mobile loans in Kenya (Updated)

Cheap Mobile Loans in Kenya: The most costly and cheapest mobile loans in Kenya have now been revealed. This revelation has been done by a Kenya Bankers Association (KBA) report titled Digital Credit, Financial Literacy and Household Indebtedness, which was intended to analyze the uptake of loans on mobile phones and their impact on borrowers.

Okoa Stima, the product which allows distressed electricity consumers to buy units on their pre-paid or post-paid connections on credit, is the most costly mobile loan in Kenya. It charges 43.4 per cent monthly interest. It is offered by Safaricom on its M-Pesa platform.

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Kopa chapaa, which is operated by Faulu Kenya and Pesa na Pesa, a product owned by Nairobi-based AVLC Group, complete the top three most expensive loan products.

Kopa Chapaa’s monthly interest rate is set at 38.8 per cent. Pesa na Pesa by AVLC Group is third. The fourth most expensive product – Pesa Pata – has an interest rate of 30.4 per cent.

Mainstream lenders including Kenya Commercial Bank Group and Commercial Bank of Africa (CBA) through their platforms KCB M-Pesa and M-Shwari respectively, price their loans at a rate of 7.5 per cent a month.

The list of expensive and cheap mobile loans in Kenya is as follows:

1). Okoa Stima – 43.4 per cent

2). Kopa Chapaa (Faulu) – 38.8 per cent.

3). Pesa na pesa (AVLC Group).

4). Pesa Pata – 30.4 per cent.