Safaricom to use M-Pesa data for affordable SME credit in Kenya

Safaricom plans to expand M-Pesa beyond payments into credit lending, using its vast transaction data to assess creditworthiness for small businesses and individuals lacking formal financial records. The telco says it will partner with investors and banks that supply capital while it provides the platform, credit scoring and collections, avoiding becoming a bank itself. This comes as Kenya’s SMEs—over 90% of businesses—struggle to get affordable loans; traditional lenders cite thin credit files and rising non‑performing loans (15.6% in March 2026) as reasons to stay cautious, pushing many borrowers to digital lenders charging annualised rates that can exceed 100%. Safaricom’s head of Super Apps, Peter Gichangi, says the bottleneck is not capital but how risk is measured, and that M-Pesa’s data on payments, salaries and supplier payments offers a richer view than collateral or audited accounts. The move mirrors M‑Pesa’s original role in bypassing banks for payments and follows models like Ant Group and Mercado Pago. For Nigerian readers, the case shows how telco transaction data could unlock cheaper credit for SMEs and households, offering a template to counter costly digital loans and deepen financial inclusion.

SOURCE: https://techcabal.com/2026/07/01/m-pesa-sees-kenya-financial-gap-credit/