Loans on KCB Mobile Banking

byMoshek Africa Team
picture of the kcb ussd code for mobile banking

For KCB loans, you can start by using the KCB Mobile banking USSD Code *522# or you can download the KCB App. The service is dubbed KCB M-Benki. You can use the service on both feature phones and smartphones.

from all the app stores, which are Google Play Store for Android, Windows app store and the App Store for iPhones.

Steps to open KCB M-Benki account

On feature phone or using USSD

Use your phone to open a KCB M-Benki account. You do not need to visit the bank. However, you can also link an active bank account to your mobile banking line. To do this, you have to visit the bank physically.

Below are the simple steps to open an M-Benki account on phone:

  1. Go to your MPESA
  2. Select Lipa na MPESA
  3. Enter KCB Paybill Number 522522
  4. Under Account Number, write your ID number starting with the word ID. For example, ID46464646 (no space between digits)
  5. Write amount to deposit
  6. Enter your M-PESA PIN.
  7. You will receive an SMS notification with a one-time PIN (OTP)
    You must change the PIN immediately to one you can remember. The new 4 digit PIN should be unique. Do not use your year of birth for such a PIN.
  8. You will receive a second SMS notifying you of your new KCB M-Benki account number.

To open Mobi bank using KCB App

On Android, follow the steps:

  1. Download the KCB App from Google Play Store
  2. Get started and follow the launch instructions to activate your app. Use the mobile phone number registered for KCB mobile banking and enter your KCB mobile banking PIN.
  3. Give permissions to the App to manage phone calls by pressing Allow.
  4. A security activation code is sent to your number to authorize the activation request. Allow the App to automatically read this and any other notification as it authenticates your Mobile number.
  5. Upon successful mobile number authentication, the App is successfully activated.
  6. You can proceed to transact on the KCB App for Android.

On iOS, follow the steps:

  1. Download the KCB App from App Store
  2. Follow the activation prompts on the App and enter your mobile number as registered for KCB Mobile banking
  3. Enter your Mobile banking PIN.
  4. Leave the interface and Dial *522#
  5. Go to ‘No. 8 My Account’
  6. Select ‘Activate iPhone App’
  7. You will receive an SMS with an activation code (code is active for 5 minutes)
  8. Enter the code received to complete the activation process.

Mobile loans available on KCB M-Benki

Once you create a mobile banking account, you are able to access KCB mobile loans. This account is called the Mobiloan Account. KCB will disburse the loan based on their own evaluation.

KCB Mobiloan

You access this loan through your mobile phone loans account. The KCB mobiloans maximum limit is KES 150,000 while the lowest amount is KES 500.

Your loan is repayable within any of the following timelines:

  • 1 month
  • 3 months
  • 6 months

KCB Kopa Bills loan

KCB gives short-term loans towards paying off your bills. One can borrow between KES 100 and KES 150,000.

This loan facility directly supports bills for DStv, Zuku, GOtv, Kenya Power pre-paid tokens, Kenya Power post-paid, Jumia, Nairobi Water, and Jambo Jet.

It’s possible for you to see your actual bill for DStv, Kenya Power post-paid, GOtv, Zuku, Jumia and Jambo Jet.

KCB Salary advance

The KCB salary advance loan on M-Benki is for salaried people who have an account with the bank. You can borrow up to 1.5 times your Net pay. The loan limit are a minimum of KES 3000 and a maximum of KES 150,000.

Use KCB salary advance USSD code *522# any time you want to get KCB loans. Make sure you have some airtime on your phone though, at least KES 10. Use this code to check your balance too.

Vooma loan

This is a newly introduced loan facility. You can access the vooma loan of up to KES 300,000 from your phone directly to your KCB account. This is a 30 day loan, which means you must repay within a month.

KCB mobile banking loans interest rates and other charges

KCB mobile banking interest rates are up to 4 percent per year above the current Central Bank rate. That means if the Central Bank rate is 12 percent, then KCB interest will be 16 percent.

Sometimes the bank may revise the interest rate downward even though this is rare.

The current interest rates from the KCB website and brochure are as listed below. Please verify with the lender as these figures may change without notice. Some sections of the website also offer conflicting info.

  1. Mobi Loan and Kopa Bill Loan are charged an interest of 6%
  2. Salary Advance is charged an interest rate of 8% per month.
  3. Vooma loan interest rate is 6.91 percent for 30 days.
  4. The lowest amount to borrow for mobiloan is KES 100.

The bank charges a one-off negotiation fee of 2.5% of the amount borrowed. This charge is added to your final loan payment calculation.

Other charges you will incur during processing are the prevailing MPESA withdrawal transaction fees. Transfer between your bank account to your MPESA is currently free.

Repaying KCB loans through MPESA

You will use the same USSD code *522# to check your type of loan, the balance, and also repay it.

In case you default on repayment, the bank automatically imposes late repayment penalty. This fee is based on the outstanding amount you owe. For example, if your debt was KES 1,000, and the penalty is 10 percent (this is used as example), then your new loan is KES 1100.

If you fail to repay it again, then 10 percent penalty will be added on the KES 1100, to become KES 1210, and so on. The penalty rate is at the discretion of KCB.

You may request for a banking statement or activity report for your Mobiloan Account from the bank.

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