M-Shwari, a financial service available to all M-PESA users, has continued to transform mobile banking in Kenya by offering both savings and credit services directly through the M-PESA platform.

The service allows customers to save as little as Ksh 1 and borrow loans starting from Ksh 1,000 up to Ksh 1 million.

Besides providing instant mobile loans, M-Shwari rewards users who save by offering an annual interest rate of up to 6.3% on savings balances.

It also allows users to lock their savings for a chosen period, encouraging disciplined financial habits.

Once a user applies for a loan, it is instantly processed and credited directly to their M-PESA wallet.

Each loan attracts a 9% fee, which includes a 7.5% loan fee and a 1.5% excise duty, the latter being deducted before the loan amount is disbursed.

According to M-Shwari, this service offers “a convenient, fast, and secure way to manage your finances, encouraging savings while giving access to quick loans.”

How to Qualify for an M-Shwari Loan

To access an M-Shwari loan, certain criteria must be met.

First, one must be an active M-PESA subscriber for at least six months.

This helps the system evaluate a user’s transaction history and spending habits.

Secondly, users are encouraged to save regularly on M-Shwari, even small amounts, as consistent savings improve a user’s credit score and build a positive financial reputation.

Lastly, it is important to use other Safaricom services such as data, calls, and M-PESA transactions.

The M-Shwari algorithm assesses your overall activity on the Safaricom network to determine eligibility and reliability.

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Effective Ways to Increase Your Loan Limit

1. Save Regularly on M-Shwari

Consistent deposits, no matter how small, show financial discipline.

The system rewards regular savers with higher loan limits, making saving one of the most effective ways to qualify for larger loans in the future.

2. Use M-PESA Frequently

Frequent use of M-PESA for sending money, paying bills, or purchasing airtime boosts your transaction history.

This activity signals to M-Shwari that you are an active and responsible user, increasing your likelihood of receiving a higher loan limit.

3. Repay Loans on Time

Timely repayment is key. Failing to settle your loans before the due date—whether on M-Shwari or other services like Fuliza—can lower your creditworthiness.

Paying on or before the deadline builds trust and improves your borrowing profile.

4. Keep Your Safaricom Line Active

Inactive lines can negatively affect your eligibility.

To maintain a healthy financial record, ensure you regularly use your line for communication and transactions.

A consistent usage pattern assures M-Shwari that you are a dependable and active customer.

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A Path to Better Financial Access

By saving consistently, using M-PESA actively, and repaying loans promptly, users can steadily increase their M-Shwari loan limits.

The service continues to play a vital role in promoting digital financial inclusion, empowering millions of Kenyans with quick, flexible access to credit and secure savings options.

Photo of Safaricom shop offering M-pesa services. PHOTO/ Safaricom PLC X