KCB M-PESA is a digital financial service born from the partnership between Kenya Commercial Bank (KCB) and Safaricom. It combines mobile banking and micro-lending into a single, convenient platform accessible via the M-PESA menu on your phone.
Through KCB M-PESA, users can save money, borrow loans, and earn interest, all without stepping into a physical bank. Its integration into the M-PESA ecosystem makes it one of the most widely used mobile financial services in Kenya.
Key Features of KCB M-PESA
- Instantly borrow amounts ranging from KSh 100 to KSh 1,000,000.
- Pay back your loan within 30 days.
- Open a savings account directly from your phone.
- Earn interest of up to 6% annually on your savings.
- Your limit increases with consistent use and timely repayment.
How KCB M-PESA Loans Work
KCB M-PESA evaluates your loan eligibility based on your mobile money transaction patterns and financial behavior. The more active you are on M-PESA and the more responsible your repayments the higher your chances of securing a bigger loan.
Once approved, the loan is deposited directly into your KCB M-PESA account and can be withdrawn, transferred, or used for purchases via M-PESA.
Loan Terms and Charges
Loan Amount: KSh 100 to KSh 1,000,000
Interest Rate: 7.35% one-time facility fee (inclusive of fees and tax)
Repayment Period: 30 days
Late Repayment Penalty: 7.5% on the outstanding loan amount
It’s important to repay your loan on time to avoid penalties and maintain or increase your borrowing limit.
Savings with KCB M-PESA
- Aside from loans, KCB M-PESA allows you to save in two distinct ways:
- Fixed Savings Account
- Lock funds for a set duration (1–12 months)
- Interest rate of up to 6% p.a.
- Minimum deposit: KSh 500
- Target Savings Account
- Save towards a goal with small, regular deposits
- Flexible contributions
- Earn competitive interest
How to Register for KCB M-PESA
- Go to your Safaricom SIM Toolkit and open the M-PESA menu.
- Select Loans and Savings.
- Choose KCB M-PESA.
- Follow prompts to activate your account.
- No app download or bank visit is required.
How to Apply for a Loan via KCB M-PESA
Open M-PESA > Loans and Savings > KCB M-PESA.
Select Loan > Request Loan.
Enter your preferred amount (must be within your loan limit).
Confirm the transaction.
Funds will be credited to your KCB M-PESA account immediately.
Repaying a KCB M-PESA Loan
Repayment is just as easy as borrowing. You can pay your loan using:
M-PESA Menu > Loans and Savings > KCB M-PESA > Pay Loan
Or directly through the KCB M-PESA option using your available balance.
Partial repayments are accepted, and the system will track your balance until fully cleared.
Tips to Improve Your KCB M-PESA Loan Limit
- Use M-PESA regularly for transactions.
- Save consistently via KCB M-PESA.
- Repay your loans promptly and fully.
- Avoid defaulting or bouncing M-PESA payments.
- Engage in continuous activity with KCB M-PESA services.