[SIZE=6]Sh30bn airtime lending raises Safaricom profile in credit market[/SIZE]
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Safaricom charges a flat interest rate of 10 per cent for airtime credit, which is repayable in five days. PHOTO | FILE
By GEORGE NGIGI, [email protected]
Posted Monday, August 15 2016 at 09:52
IN SUMMARY
[ul]
[li]At Sh30 billion, Okoa Jahazi’s loan book was larger than that of some bottom-tier commercial banks – making it a significant player in the credit market.[/li][li]Safaricom has been developing the lending facility it launched seven years ago to attract more users and has set credit limits ranging from Sh20 to Sh1,000 for each subscriber depending on their usage patterns.[/li][li]The telecoms operator is also currently holding some Sh5.9 billion worth of unredeemed bonga points.[/li][/ul]
Mobile phone subscribers borrowed up to Sh30 billion worth of airtime or nearly a third of the total airtimeSafaricom sold last year, underlining how critical telecoms operators have become in the credit market.