Safaricom’s M-PESA has launched a new set of business solutions designed to empower Kenya’s Micro, Small, and Medium-sized Enterprises (MSMEs).
This move is a significant boost to the country’s economy, as MSMEs contribute 40% to Kenya’s GDP and account for 83.5% of total employment.
According to Esther Masese Waititu, the Safaricom Chief Financial Services Officer, approximately 0.7M merchants actively use Lipa na M-PESA, and these new solutions are tailored for them.
“We’re launching enhanced Business Credit solutions in partnership with KCB Bank Group, Sidian Bank, Diamond Trust Bank, and Pezesha, directly supporting the people who drive our economy,” Waitutu said.
“With Taasi Till and Taasi Pochi, small traders, informal businesses, and entrepreneurs can now access loans from KES 1,000 to KES 250,000 directly on their phones, with minimal requirements,” she added.
She explained that through Fuliza Biashara, Lipa na M-PESA Merchants can draw multiple overdrafts from a minimum of Kshs 1000 to Kshs 400,000 based on their assigned limit.
As part of the revamp, Waitutu noted that merchants will be able to repay their overdraft flexibly, recovered when there’s an inflow on the till to allow business continuity.
Key Features of the Solution
The M-PESA Business Solutions include:
Taasi Till and Taasi Pochi
These solutions provide small traders, informal businesses, and entrepreneurs with access to loans directly on their phones.
Fuliza Biashara
This solution allows Lipa na M-PESA merchants to draw multiple overdrafts based on their assigned limit, with flexible repayment terms.
Impact on Kenya’s Economy
The launch of M-PESA Business Solutions is a key driver for Kenya’s economy, as it will:
Increase access to credit
MSMEs will have easier access to credit, enabling them to grow their businesses and create more jobs.
Boost economic growth
By empowering MSMEs, the solution will contribute to Kenya’s economic growth and development.
“At Safaricom PLC, we see more than just transactions; we see the hustle, resilience, and ambition behind every Lipa na M-PESA story. To the Nyamakima traders, the vendors in Kibuye, the Kongowea traders, boda boda riders, salon owners, and mama mbogas – you are the true builders of M-PESA, and we appreciate you,” Waitutu stressed, adding, “Your trust has made M-PESA a financial partner to over 35 million Kenyans.”
Support entrepreneurship
The solution will support entrepreneurship and innovation, enabling businesses to thrive and create more opportunities.
Partnership with Commercial Banks
To successfully execute this initiative, Safaricom has partnered with select commercial banks, including KCB Bank Group, Sidian Bank, Diamond Trust Bank, and Pezesha, to offer the M-PESA Business Solutions.
This partnership demonstrates the importance of collaboration between the private sector and financial institutions in driving economic growth.
The launch of M-PESA Business Solutions is, therefore, a significant milestone for Kenya’s economy. By empowering MSMEs, the solution will contribute to economic growth, job creation, and entrepreneurship.
With this partnership between Safaricom and commercial banks, the initiative is well-positioned to make a positive impact on the country’s economy.