M-Shwari is CBA’s and Safaricom’s banking product that was introduced in 2013 following the success of M-Pesa. The platform was initiated to promote a saving culture in Kenya. Since 2013, M-Shwari has enabled millions of Kenya to save, borrow as well as invest their money in different areas thus improving their livelihoods. Not only has M-Shwari revolutionized digital finance services in Kenya, but together with M-Pesa, these products have led to the alleviation of poverty and contributed to financial inclusion in the country.
Now let’s take a look at how M-Shwari works and its benefits.
M-Shwari allows you to securely save your money but you can as well withdraw any amount to M-Pesa at no transactional fee. Its main features include;
- No charges
- No minimum balance
- Credit limit grows if you borrow and pay your loan in time.
- Another feature is the 6.65% interest rate per annum on any amount deposited on M-Shwari.
That said, apart from the one-time facilitation fee of 7.5% which is levied on any loan, have you established the following benefits as guaranteed by using M-Shwari?
- It’s not cumbersome
Needless to say, this digital financial service is operated from a handset and doesn’t require any papers. No forms, no visiting banks to access your money, nor is there a fee required to open an account. As mentioned earlier, transactions between M-Pesa and M-Shwari are not levied. In the same way, you do not need internet to access the service. It is fast, efficient and secure.
- A lifesaver
If you read this story of The thief who became my husband, you would’ve automatically advised me to use M-Shwari, if at all such a situation arises. That way Mr celeb wouldn’t have had the chance to reverse his Ksh 500. Far from that, and similarly, M-Shwari gives you an opportunity to lock away as little as 1 Ksh breaking that easy access. It also alters your behaviour and that way you don’t overspend on credit as you do when your money is on M-Pesa.
- Mitigates shocks
Imagine you are this lady for the Muthaiga Map Guy story and after staying the night, you wake up with no fare, no access to money, but a map that will direct you to the bus station. M-Shwari mitigates the shocks of being broke or having less than enough money. As long as you have an M-Shwari account and you have been using services like data, voice and M-Pesa and your account is older than 6 months, you qualify for a loan. The loan is instant and you get a leeway of one month to repay it. Finance tools to help you save more this year.
To grow it though, you need to save more, transact frequently use Safaricom products consistently and repay your loan on time.

- Promotes your personal finance skills
Well, banks do too, but the hassle comes in when you have to part with a fee during transactions. The good thing about M-Shwari is that it allows you to lock your savings for a fixed period of time and you can earn interest while at it. The period is not less than one month and neither can you lock your money for a period exceeding 6 months. Want to be wealthy? Investment tips 101
Again, since M-Shwari is easy to access, you can just deposit any amount you desire from M-Pesa and keep on supplementing that amount (with time) until you attain your goal. 7 reasons why you need to manage your money.
In this way, not only has M-Shwari proven beneficial to the average person but since it was made with a Kenyan’s mental model of managing money in mind, it has led to more people embracing the product. Especially the unbanked. M-Shwari comes with simple rules, instant feedback after transactions and a reciprocal relationship with Safaricom if you save and pay back your loan on time. What you need to know before trying online lending.
- No dormancy
Regardless of whether you will be transacting, depositing or withdrawing any amount to M-Pesa or not you are assured that you will not find your account dormant as in some banks.
M-Shwari is tailored for someone who doesn’t like the hassle that comes with accessing money from banks or other services.

To activate M-Shwari, simply click on Safaricom >select M-Pesa >select ‘my account’ >select ‘update menu’ >select M-Shwari >select activate account >accept the terms and conditions > and await instant confirmation. A text will be sent to you informing you that you have activated your M-Shwari service.
How To Leverage M-Shwari To Achieve Your Financial Goals In The Midst Of The Pandemic
M-Shwari 52 week challenge: ideas on what you can do with the savings.
Unpacking Safaricom’s No Expiry Data Plans – here’s what you need to know.
Featured image via mojapedia