Safaricom, Kenya’s largest mobile network provider, has teamed up with digital lender Pezesha to introduce a new loan service for small business owners, Mkopo wa Pochi. This product allows business owners to borrow money directly through their M-PESA business accounts, offering much-needed financial support for small enterprises.
Mkopo wa Pochi is available on Safaricom’s M-PESA super app and works alongside the Pochi la Biashara business wallet, which already serves over 632,000 merchants. With over 32.4 million active M-PESA users, Safaricom’s collaboration with Pezesha gives the lender access to a vast customer base while enhancing Safaricom’s range of financial services.
Pezesha, known for its digital lending expertise, will handle credit assessments. This process will look at factors like a customer’s business transaction history, mobile money usage, and reports from credit bureaus to determine eligibility. Borrowers can repay their loans within seven days, with an option to extend for another week for an additional fee. Late payments will attract small penalties to encourage timely repayment.
This partnership benefits from Pezesha’s recent advancements in credit scoring technology, bolstered by a $500,000 grant from the U.S. International Development Finance Corporation in May 2024. The service also builds on Pezesha’s success in raising $11 million in funding in 2022, enabling it to scale its lending capabilities.
Mkopo wa Pochi represents an important step in providing accessible financial solutions to small businesses in Kenya, combining Safaricom’s extensive mobile money platform with Pezesha’s lending expertise. This new service is expected to empower merchants by offering quick, reliable access to credit to help them grow and manage their operations effectively.
