A Kenyan startup has developed a fully automated system dubbed M-Pepea set to revolutionize country’s credit system by offering instant loans to workers at a fee via their mobile phones.

M-Pepea (Emergency Mobile Credit) targets employees on full-time basis registered for the service and offers small emergency loans ranging from (US$58 to US$350) depending on pay-scale. Users can access loans anytime anywhere without the necessity of having to wait for advance approvals or having to visit a financial institution to request for emergency money.

To be eligible, employees and their employer register for the service and then borrowers can request loans by sending a blank SMS to M-Pepea. The system will  automatically send a request to M-Pesa to credit the borrower’s number with the specified amount depending on their contract.

The loan is repaid through a check-off system from the borrower’s salary at an interest rate ranging between 10 to 15%.

M-Pepea has been developed by Kenyan based innovation company, Raven Ltd,  founded in 2010, to offer basic financial services through mobile money transfers.

According to Raven, M-Pepea is not intended to compete with traditional micro-lending as it only applies to emergency situations where users can within a short period of time access money to fulfill short term objectives.

Similar services including Txt loan, Instant txt loans, 24-7 Money Box, Cash Genie currently in use in the UK.


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14 Responses

  1. Fred Williams

    The idea of coming up with M-pepea is a noble one as many kenyans who fall in the category of middle income and low income earners are unable to access bank loans due to lack of collateral documents, which are need to secure a loan. In this age, online banking has become very popular and paypal has taken a center role in it. If you would like to transfer your money from paypal to m-pesa or vice versa through a secure system, then do not hesitate to click on the link below:


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