M-Shwari is one of the most popular mobile loan and savings platforms in Kenya, offering fast, secure, and paperless financial services to M-PESA users. Developed through a partnership between Safaricom and NCBA Bank, M-Shwari allows customers to save money and access instant loans directly from their phones without visiting a bank.
In this SEO-optimized guide, we cover how M-Shwari loans work, loan limits, interest rates, eligibility, repayment, and how M-Shwari compares to other mobile loans like Fuliza and KCB M-PESA.
What Is M-Shwari?
M-Shwari is a digital banking service integrated into M-PESA that enables users to save and borrow money instantly. It does not require paperwork, a minimum balance, or physical branch visits.
M-Shwari offers two key services:
- M-Shwari Savings Account – Earn interest on your savings
- M-Shwari Loans – Access instant unsecured mobile loans
All services are available via the M-PESA menu or mySafaricom App, making M-Shwari one of the most convenient financial solutions in Kenya.
M-Shwari Loan Limits in Kenya
M-Shwari loan limits are determined by an automated credit-scoring system that analyzes your M-PESA usage, saving behavior, and loan repayment history.
- Minimum Loan Amount: Ksh 100
- Typical Starting Limit: Ksh 2,000 (varies by user profile)
- Maximum Loan Amount: Up to Ksh 50,000 for individual accounts
- Business Accounts: May qualify for higher limits
How to Increase Your M-Shwari Loan Limit
- Save consistently on M-Shwari
- Use M-PESA regularly
- Repay loans on time or early
Responsible usage is the most effective way to unlock higher loan limits.
M-Shwari Interest Rates and Charges
Instead of traditional interest, M-Shwari applies a facility fee charged once per loan cycle.
- Facility Fee: 7.5% of the loan amount
- Excise Duty: 20% of the facility fee (equivalent to 1.5% of the loan)
- Total Cost: 9% per 30 days
Example:
Borrow Ksh 1,000 → Repay Ksh 1,090 after 30 days.
Late Repayment Fees
If you fail to repay within 30 days:
- The loan rolls over for another 30 days
- An additional 7.5% facility fee is charged
Late repayment can reduce future loan limits and affect your credit score.
How to Save on M-Shwari
Saving on M-Shwari is free and earns interest of up to 6.3% per annum, making it ideal for short-term and medium-term savings.
Steps to Save on M-Shwari:
- Open the M-PESA menu or mySafaricom App
- Select Loans and Savings
- Choose M-Shwari
- Tap Send to M-Shwari
- Enter the amount and confirm with your M-PESA PIN
M-Shwari Lock Savings Account
The Lock Savings Account allows you to lock funds for 1 to 12 months and earn higher interest. This option is perfect for goal-based saving and financial discipline.
How to Withdraw Money from M-Shwari
Withdrawing money from M-Shwari to your M-PESA wallet is free and instant.
- Go to the M-Shwari menu
- Select Withdraw from M-Shwari
- Enter the amount
- Confirm using your M-PESA PIN
Funds reflect immediately in your M-PESA balance.
How to Apply for an M-Shwari Loan
To qualify for an M-Shwari loan, you must have been an active M-PESA customer for at least 6 months.
How to Borrow from M-Shwari:
- Open the M-Shwari menu
- Select Loan
- Choose Request Loan
- Enter the amount within your approved limit
- Confirm with your M-PESA PIN
Loan funds are deposited instantly into your M-PESA account.
How to Repay M-Shwari Loans
M-Shwari loans must be repaid within 30 days.
Repayment Steps:
- Go to the M-Shwari menu
- Select Loan
- Tap Pay Loan
- Choose to pay from M-PESA or M-Shwari Savings
- Enter the amount and confirm with your PIN
Early repayment improves your credit rating and increases future loan limits.
M-Shwari vs Fuliza vs KCB M-PESA: Comparison Table
| Feature | M-Shwari | Fuliza | KCB M-PESA |
|---|---|---|---|
| Service Provider | Safaricom & NCBA Bank | Safaricom & Partner Banks | Safaricom & KCB Bank |
| Loan Type | Short-term mobile loan | M-PESA overdraft | Mobile term loan |
| Maximum Loan Limit | Up to Ksh 50,000 | Usage-based | Up to Ksh 1,000,000 |
| Interest / Fees | 9% per 30 days | Daily usage fees | Approx. 7.5%–8% per month |
| Repayment Period | 30 days | Automatic deduction | 30–90 days |
| Savings Option | Yes (earns interest) | No | No |
| Best Use Case | Savings & emergency loans | Short-term overdrafts | Larger personal or business loans |
Final Verdict: Is M-Shwari Worth It?
M-Shwari remains one of the best mobile loan apps in Kenya for users seeking quick access to credit combined with a secure savings option. Its instant loan approval, transparent fees, and interest-earning savings account make it suitable for emergencies and short-term financial needs.
However, borrowers should use M-Shwari responsibly. Timely repayment avoids extra fees, protects your credit profile, and unlocks higher loan limits over time.
If you are looking for a reliable, easy-to-use mobile loan and savings solution in Kenya, M-Shwari is a smart choice.