M-PESA revolutionizes SME financing with new business solutions launch

M-PESA has unveiled specialized business solutions designed to empower the country's micro, small, and medium enterprises (MSMEs). The new suite of services addresses the critical financing gap for Kenya's entrepreneurial backbone, the 7.4 million MSMEs that contribute 40% to national GDP and employ 83.5% of the workforce. 

The comprehensive package introduces three transformative products: Taasi Till and Taasi Pochi for microloans between KES 1,000-250,000 accessible via mobile; Fuliza Biashara offering merchant overdrafts up to KES 400,000; and smart repayment systems that automatically deduct balances when funds flow into business accounts. These innovations emerge from strategic partnerships with KCB Bank Group, Sidian Bank, Diamond Trust Bank, and fintech firm Pezesha. 

Esther Masese Waititu, M-PESA's Chief Financial Services Officer, emphasized the human element behind the digital transformation: "From Nyamakima wholesalers to Kibuye market vendors, from boda boda riders to mama mbogas – these are the real architects of M-PESA's success. Our new solutions recognize their daily struggles and aspirations." 

The launch specifically targets Kenya's 700,000 Lipa na M-PESA merchants who've demonstrated financial discipline through consistent mobile transactions. By leveraging their existing payment history, the platform eliminates traditional collateral requirements that often exclude informal sector players from formal credit systems. 

This development marks an evolution in M-PESA's 17-year journey from mobile money pioneer to full-service financial ecosystem. The timing proves particularly crucial as Kenyan SMEs navigate post-pandemic recovery amid rising operational costs. With 35 million Kenyans already using M-PESA, these business-specific tools promise to accelerate financial inclusion while stimulating economic growth at grassroots level. 

By:  Kanto Kai Okanta