When MoKash made its way to Uganda, it had already gained ground in Kenya under the M-Shwari banner. M-Shari too is a product of Commercial Bank of Africa (CBA) and Safaricom whose success ushered other East African Markets to the mobile saving and lending service, going by M-Pawa in Tanzania with Vodacom, MoKash in Uganda with MTN and murmurs suggest that CBA is extending the product to Rwanda in partnership with Tigo.
The strides made by MoKash in a few month’s time here are somewhat reminiscent of what its equivalent, M-Shwari is doing in Kenya. M-Shwari has driven CBA’s Q3 net-earnings by 53% to Kshs 3.9 billion at the back of non-interest earnings where it falls. These non-interest earnings grew to Kshs 4.15 billion and Business Daily reports that they were a key profit driver for the financial period in question represented by 70%.
This growth is faster than the 11% in interest income from loans it adds, expressing an increased uptake by the bank’s mobile customers. It is against such results that the the micro savings and lending product is deemed fit for the un banked East Africans since it addresses a market previously ignored by lenders.
MoKash’s growth here is testament of the above statement amassing over 1 million users in 70 days and dishing out 1 billion in the due process,adding an average of 15,000 users per day while processing over 2,000 loans in the same duration.