Just because a big shot is at the launch doesn't mean a product is kosher.

Anyone remember the fanfair with Nation Hela?

This is a dangerous product even if you sugar coat it. You are saying that someone can borrow 7% pm...that's shylocking at its best.

On the other hand, you say it belongs to Safaricom...No it belongs to CBA....No it is only virtual money....Oh No...It is unregulated borrowing....You can have a press release if you wish but that's just what it is.

Mpesa must be regualated. Just because the CBK shared the bedroom with the Mpesa behomoth doesn't make it fair business practise.

In short, CBK has decided to support one lender in the country who is skimming money off uneducated folks who will be borrowing at rates previously unheard of. The story given as to who it supports simply means that the business people at Marikiti will be borrowing at a rate of 7% a day. Someone care to do the math?

They are also going to use my money that I have on Mpesa to give out loans to people who may otherwise not qualify for prudent loans. If equity has a bad loan book, anyone want to guess how long it will take for the 5k mama mbogas to start defaulting?

Hii Mpesa, will go Nation Hela way. Na mtalia.

@McReggae hakuna shida. You are under the new constitution. You can think and do as you wish.

I've said what I think about Mpesa.

Now can you please explain what you think rather than what you read in a press release that was paid for? Ama mnadhania we don't know how much money is being spent to sell this product.

Tell me if I'm wrong that tomorrow morning every radio station will be talking about it.

You journalists will be the end of this country. Regurgitating information for a paycheck.

This product looks very similar to Mkesho. It will be an interesting case study noting that Mkesho as millions of Equity customers gave it a wide berth. Its just different a monkey this time but should sort out the failures of Mkesho. For instance, if you deposited 10,000 to Mkesho, you had to withdraw it twice before accessing the money, i.e. First withdraw from Mkesho to Mpesa was charged e.g 150, then withdraw again from an agent and charged again e.g. 150. To benefit from that interest on deposits, you had to get interest above these charges.

What is different now with Mshwari???


On borrowing, 7% per month is only music to those who can make much more profit like those 'marigiti' vendors.

Can someone please explain how the governor of the central bank can be seen hobknobbing around with a product that is a case study in shylocking? Is that the current gov't policy? To lend funds at 7% per few hours for those who can't afford it?

Say what you will. Buy the media on every radio station on Wednesday. It doesn't change the fact that if Mpesa is lending out money, it should be under the Banking Act.

Unless the CBK is stating that shylocking is now a legitimate business, why would banks now follow KYB principles when its biggest competitor has none of those rules to follow?

@Alma....I think the governer is allowed to attend whatever launch he wants to.The rates are ok for SOME people.Same way some people say mortgages are expensive while others go for them.It may be expensive to you but Mr.Chege will have made his 925sh that day.

Also note that all lending is not under Banking Act.Examples include Saccos,Non deposit taking MFIs etc.

Sema shida ingine.Infact my only worry is what they will do to prevent defaults.

Sorry Reggae man, it should have been PSEUDO JOURNALISTS.

Of course I can go around peeing at my neighbours front lawn and everyone accepts that as just fine. It doesn't mean that it is fine.

Any rate above what is a reasonable rate of return is shylocking. Whether the guys in River Road charge 10% or 40% is beside the point.

In fact, we are now creating a shylocking monopoly.

I have no doubt that someone will be able to pay it back. That is not the point.

The point is, what role is the gov't taking in encouraging shylocking as a legitimate business?

How long will it for banks to change their model and just start giving out loans willy nilly? After all, if Mpesa has the blessings of CBk, why can't they?

It's not about Mpesa. Its about the CBK bending its own rules and regulations to please one entity.

All you reading this, know deep down, there is something fundamentally wrong about this. It doesn't matter if Mpesa makes money off it or not. A can of worms is being opened as we watch.

@alma, somewhere in the globe some banks charge as low as 4% as interest, ours were charging upto 29% at some point this year....were they shylocking then....this is a matter of choice and for me the convenience beats everything else!!!

For those who already have M-Shwari account, dial *197*6# and check how much you can borrow. May be then we can ask ourselves how this figure is calculated and whether one can easily default.

intr.v. shy·locked, shy·lock·ing, shy·locks
To lend money at exorbitant interest rates.

It doesn't matter the amount, rate or the ability to pay, or whether others are more expensive.

To lend money at exorbitant interest rates.


Dunkang...10000 kenyans borrow 10000 bob just before the election. Haki yetu go on the street. You will come back here screaming bloody murder.

Of course I may be wrong. After all, I'm no economist and don't have a degree. I really doubt that though.

This is a product that can bring the whole country to its knees if there is even a semblance of disorder. It must be regulated.

Regulation can sometimes be a hindrance to innovation!!!...Safcom and CBA have had a team working on this for the last 12months!!!