Diamond Trust Bank (DTB) has partnered with Safaricom to launch the Taasi Till Loan, a short-term credit facility aimed at providing business loans to merchants using Safaricom’s Lipa na M-Pesa till numbers.
Under this innovative product, eligible merchants can access loans of up to KSh250,000, repayable within 14 days. The move is designed to ease cash flow challenges and support the growth and sustainability of MSMEs that often grapple with limited access to timely and affordable credit.
“At DTB, we are keen to play our part in unlocking the development of MSMEs across the country. Through this partnership, we aim to extend a much-needed credit line to these small businesses, which often need quick and short-term credit as the lifeline of their daily operations,” said Murali Natarajan, DTB Managing Director and CEO.
Key Benefits for SMEs
1. Immediate Access to Capital:
The loan facility targets businesses that require urgent working capital to replenish stock, pay suppliers, or manage operational costs, especially in sectors where cash flow is unpredictable.
2. Seamless Integration with Lipa na M-Pesa:
By leveraging till numbers already used for daily transactions, Safaricom and DTB are tapping into real-time business performance data, making it easier to assess loan eligibility and reduce credit risk.
3. Data-Driven Lending:
The product is designed based on the transactional data of merchants, offering an objective and transparent lending criterion that increases inclusivity and reduces the barriers to access for smaller traders.
4. A Scalable Model:
In its pilot phase, the facility saw over 23,000 merchants opt in, borrowing over KSh135 million, with the average loan size being KSh17,500. This demonstrates both demand and potential for scaling across the country.
Strategic Support for Kenya’s Economic Backbone
Dr. Peter Ndegwa, Group CEO of Safaricom PLC, emphasised the centrality of small businesses to Kenya’s economic fabric:
“Businesses play a pivotal role in Kenya’s economy and make a significant impact in our communities. Leveraging the power of technology, Taasi will offer convenience and access to credit for MSMEs, allowing them to focus on scaling their businesses.”
The partnership also underscores DTB’s broader strategy to support economic development by improving financial inclusion:
“At DTB, our goal is to drive development and economic growth by making our services easily accessible to MSMEs across the country,” Mr. Natarajan noted. “We’ve achieved this by expanding our branch network, enhancing our digital platforms, and now, through this partnership with Safaricom, by offering a targeted solution to the financing challenges MSMEs face.”