Commercial Bank of Africa Weighs Options to Reduce M-Shwari Fees
Wednesday, September 28, 2016
Commercial Bank of Africa says it is likely to revise down the 7.5 per cent facilitation fees for its mobile phone-based monthly loans via the M-Shwari platform by end of the year.
CBA managing director Isaac Awuondo said the largest mobile lender will review the business model for M-Shwari – a product it co-owns with Safaricom – an indication the tier-one bank is feeling the public pressure over the charges perceived to be high when annualised.
Awuondo, however, insisted M-Shwari has a facilitation fee of 7.5 per cent for the monthly loans, which can be rolled over to the next month with the due cumulative amount becoming the new principal.
The review, he said, will seek to realign M-Shwari charges with the drop in interest rates after the Banking (Amendment) Act 2016 took effect on September 14.