M-pesa Signals Push into Affordable Lending in Kenya

In Short

Safaricom says M-PESA’s next growth focus is lending.

Banks in Kenya often avoid small and newer borrowers.

Safaricom is inviting partners to help offer cheaper, more accessible credit.

What Happened

Safaricom is positioning M-PESA for a bigger role in lending, not just payments. The company says Kenya’s credit gap is still wide, especially for small businesses and households.

In a recorded conversation on the Voices & Visions podcast, Safaricom executive Peter Gichangi, the head of Super Apps, said the demand for affordable credit is clear. He described “real pain” in the market, and said Safaricom is open to discussions with partners, including lenders from Europe, to provide accessible and affordable credit.

The backdrop is familiar. Many banks focus lending on customers with long credit histories and stronger collateral, which means smaller merchants and informal workers struggle to qualify. Collateral is an asset you pledge to secure a loan, like land or a car. When banks say no, borrowers often turn to high-cost digital loans or informal moneylenders.

M-PESA already serves more than 30 million customers in Kenya, which gives it reach and transaction data. Transaction data is a record of money in and money out, like a financial diary. In lending, that data can be used to estimate ability to repay, although it does not replace income verification.

Safaricom did not announce a new product or launch date. The message was more about direction and partnership interest.

Why It Matters

If M-PESA expands deeper into credit, it could reshape how working capital reaches micro and small businesses. Working capital is short-term cash used to restock, pay suppliers, or cover bills.

It could also raise new questions for regulators and consumers. Digital credit can help people access loans faster, but it can also lead to over-borrowing if pricing, disclosures, and collections are not well controlled.

For fintechs and lenders, Safaricom’s comments signal potential partnership opportunities. For Kenyan borrowers, it suggests the next phase of mobile money competition may be about cheaper credit, not just easier payments.