Updated 28 October 2026
Quick answer: on Safaricom’s own product pages read on 25 October 2026, an M-Shwari loan costs 9% for one month (a 7.5% loan fee plus 1.5% excise duty), while a KCB M-Pesa loan is charged a facility fee of 8.93%, also for one month. On a KSh 10,000 loan that is KSh 900 with M-Shwari and KSh 893 with KCB M-Pesa, so the cost is almost the same. The bigger differences are the loan limit you are given, which depends on your own M-Pesa and savings history, and the savings products. Both pages say savings can earn up to 6.3% a year.
This comparison puts the published terms side by side, works through examples and explains how to choose. Your actual limit is set by each lender’s scoring, so check both menus on your phone.
KCB M-Pesa vs M-Shwari at a Glance
| Item | M-Shwari (NCBA, via Safaricom) | KCB M-Pesa (KCB, via Safaricom) |
|---|---|---|
| Loan cost per month | 9%: 7.5% loan fee + 1.5% excise duty; excise is deducted from the amount sent to M-Pesa | 8.93% facility fee, as published |
| Repayment period | One month | One month |
| Loan limits | From KSh 100 up to KSh 50,000 in the loan section of the page (the summary also mentions up to KSh 1 million) | From KSh 100 up to KSh 1 million |
| How to qualify | M-Pesa user for at least 6 months, save on M-Shwari, actively use Safaricom voice, data and M-Pesa | M-Pesa user for 6 months, save on KCB M-Pesa, actively use Safaricom services; ID registration required (not passport) |
| Savings interest | Up to 6.3% a year | Up to 6.3% a year |
| Locked savings | Lock Savings: 1 to 6 months on the menu, no minimum, interest paid monthly; early withdrawal arrives after 48 hours | Fixed Savings: 1 to 12 months, minimum KSh 500; also a Target Savings Account |
| Transfers to and from M-Pesa | Free | Free |
| Where to find it | M-Pesa menu or app: Loans and Savings, M-Shwari | M-Pesa app (Grow), MySafaricom app, SIM menu or *334#: Loans and Savings, KCB M-Pesa |
Source line: Safaricom M-Shwari page (last updated 28 May 2024) and KCB M-Pesa page (last updated 22 July 2025), both read on 25 October 2026. Where a page gives two different limits, we show both.
What a Loan Costs: Worked Examples
| Loan | M-Shwari at 9% | KCB M-Pesa at 8.93% | Difference |
|---|---|---|---|
| KSh 1,000 | KSh 90 | KSh 89.30 | KSh 0.70 |
| KSh 5,000 | KSh 450 | KSh 446.50 | KSh 3.50 |
| KSh 10,000 | KSh 900 | KSh 893 | KSh 7 |
| KSh 50,000 | KSh 4,500 | KSh 4,465 | KSh 35 |
These charges are for one month. Because the fee is charged on a one-month loan, the yearly cost is far higher than a bank loan’s interest rate. If you borrowed KSh 10,000 this way every month for a year, the fees alone would total KSh 10,800 with M-Shwari or KSh 10,716 with KCB M-Pesa. Use these loans for short gaps, not ongoing spending. To compare with Fuliza, see Fuliza vs M-Shwari.
What Happens If You Repay Late
Both are bank loans reported to credit reference bureaus. Late repayment can lead to a negative listing that affects other borrowing. See how to get a CRB clearance certificate if you are already listed. Check each product’s terms on the menu for any rollover or late charges before you borrow.
Savings: Which Pays More?
Both Safaricom pages advertise interest of up to 6.3% a year, with the top rate tied to locked or fixed savings and larger balances. The practical differences:
- Flexibility. M-Shwari Lock Savings has no minimum and allows early withdrawal, paid after 48 hours.
- Longer terms. KCB M-Pesa Fixed Savings can lock money for up to 12 months but needs at least KSh 500.
- Goal saving. KCB M-Pesa’s Target Savings lets you save small amounts towards a set goal; M-Shwari offers a Lock Savings target and the M-Shwari 52 Week Challenge.
Interest on bank deposits is taxed at source. For higher returns with daily access, compare a money market fund; see money market funds vs Treasury bills.
Which Should You Use?
- You need a small, quick loan: the cost is almost identical, so use whichever gives you a big enough limit. Check both menus.
- You want a bigger limit: both lenders build limits from saving and active M-Pesa use over at least six months. Saving regularly in the one you want to borrow from helps.
- You want to save without touching the money: KCB M-Pesa Fixed Savings for up to 12 months, or M-Shwari Lock Savings if you might need early access.
- You keep rolling loans over: stop and compare a bank or Sacco loan; see our CBK-licensed lender tracker for licensed alternatives.
More detail on each: M-Shwari guide and KCB M-Pesa guide.
Frequently Asked Questions
Is KCB M-Pesa cheaper than M-Shwari?
Slightly, on the published figures: 8.93% versus 9% for a one-month loan, a difference of KSh 7 on KSh 10,000.
Can I have both M-Shwari and KCB M-Pesa?
Yes. They are separate accounts with separate limits, both on the M-Pesa menu.
Why is my KCB M-Pesa limit zero?
Safaricom says customers on M-Pesa for less than six months get a limit of zero. Saving and active use help build a limit over time.
Does M-Shwari charge excise duty?
Yes. The page lists the 9% cost as a 7.5% loan fee plus 1.5% excise duty, deducted from the amount sent to M-Pesa.
Last checked 25 October 2026 on safaricom.co.ke (M-Shwari and KCB M-Pesa pages).
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