Kenya Commercial Bank (KCB) has a mobile banking service that is accessible through both the USSD and the KCB App. The KCB Mobile banking USSD Code is *522# while you can download the KCB App from all the app stores, which are Google Play Store for Android, Windows app store and the App Store for iPhones. The service is dubbed KCB M-Benki.
How to open a KCB M-Benki account
The KCB M-Benki account is opened and operated on the mobile phone. You do not have to visit a bank to open this kind of account. However, if you already have an account with KCB and would like it to be linked to your mobile phone, then you must visit a branch of the bank and apply for mobile banking.
Follow the steps below to open an M-Benki account:
- Go to your MPESA
- Select Lipa na MPESA
- Enter Paybill No. 522522
- Under Account Number, write your ID number starting with the word ID. For example, ID23232323 (Make sure there is no space)
- Enter amount to deposit
- Enter your M-PESA PIN.
- You will receive an SMS notification with a one-time PIN
You must change the PIN immediately to one you can remember. The new 4 digit PIN should not be so easy for anyone. Do not use your year of birth for such a PIN.
- You will receive a second SMS notifying you of your new KCB M-Benki account number.
If you are using a smartphone, just download the KCB App from the app store.
Once you download the app, press *522#PIN to activate it.
Types of mobile loans you can access via KCB M-Benki
One you have created a mobile account, you are able to access KCB mobile loans. This account is dubbed the Mobiloan account. Of course, KCB will do their own diligence before accepting your loan request.
- KCB Mobiloan
This is the loan you acquire through your mobile phone loans account. On the KCB mobiloans limits, you can borrow amounts as low as KES 500 and a maximum of KES 100,000.
Your loan can be repaid within any of the following time limits:
- 1 month
- 3 months
- 6 months
2. KCB Salary advance
You can also get a salary advance via the M-Benki mobile loans service. You are allowed up to 1.5 times your Net pay. Loan limits are KES 3000 and a maximum of KES 100,000.
3. KCB Kopa Bills loan
The bank can give you a short-term loan towards paying off your bills. Loan limits range from KES 100 and a maximum of KES 100,000. The directly supported bills include DStv, GOtv, Zuku, Kenya Power pre-paid tokens, Kenya Power post-paid, Nairobi Water, Jumia and Jambo Jet.
For some of the mentioned platforms, you can see your actual bill. Bill presentment is available on DStv, GOtv, Zuku, KPLC postpaid, Jumia and Jambojet. Bill presentment gives the user the exact bill to pay for KPLC postpaid is dependent on usage therefore a customer upon entering the account number gets to view the exact amount that is due.
KCB Interest rates and charges for mobile loans
The bank charges a maximum interest of 4 percent per year above the prevailing Central Bank Rate. So if the Central Bank rate is 12 percent, you will be charged 16 percent interest. The interest rate may be revised downward at the discretion of the bank, though this rarely happens.
The bank also charges a one off negotiation fee of 2.5% of the amount borrowed. The Interest and negotiation fees must be paid by you when you make your Loan repayment.
Remember you will also be charged the normal mobile phone – bank transaction fees when transferring or withdrawing funds.
In case you default on repayment, the bank automatically starts charging a late repayment penalty fee which is calculated on any outstanding amount in respect of the loan and continues to accrue till payment is received by the bank in full. It is not clear how the KCB calculates this penalty amount.
You may request for a statement or activity report in respect of your Mobiloan account from the bank.
NB: The information above is from bith the KCB main site and the terms and conditions brochure. All due care was taken when compiling it. However, there are some discrepancies between the terms and conditions brochure and the main site as noted below.
Some section of the website indicates that:
- Mobi Loan and Kopa Bill Loan are charged an interest of 6%
- Salary Advance is charged an interest rate of 8% per month.
- The lowest amount to borrow for mobiloan is KES 100.
Kindly confirm these with the bank first before transacting.
*Info last updated 15 June 2019