Kenya: Launch of a new saving feature on M-Shwari
The Commercial Bank of Africa (CBA) and Safaricom Limited have introduced a fixed deposit feature on M-Shwari mobile banking service.The Commercial Bank of Africa (CBA) and Safaricom Limited have introduced a fixed deposit feature on M-Shwari mobile banking service.
CBA Kenya's CEO Jeremy Ngunze told Caj News Africa that the "Lock Savings Account" feature was introduced to "instil the discipline required to make medium term savings towards a specific goal" in Kenya, where savings fall below 20 percent of gross domestic product.
Betty Mwangi-Thuo, Safaricom's General Manager of Financial Services, added that reports by the central bank have "lauded" M-Shwari as the most impactful contributor to the formal financial services sector "in the history of the nation".
M-Shwari has over seven million customers who have in the last two years saved more than Sh40 billion (€335 million) and taken out loans worth Sh1,2 billion.
It allows customers save as little as Sh1 and earn interest on their saving balance.
Users can also customers access a microcredit product at a minimum of Sh100 anytime.