KCB Bank Kenya has kicked off a financial literacy initiative to drive up savings in the country. known as WekaWeka, the KCB M-PESA campaign will also enable customers grow their mobile banking borrowing limits, giving them access to more money to enhance their livelihoods.
KCB M-PESA has a Target Savings Account that allows customer to target save for an upcoming project. Interest earned on Savings is 6.3% p.a. The interest earned on KCB M-PESA accrues on a daily basis and is loaded to the principal. KCB M-PESA is accessible on the Safaricom M-PESA menu. Transfer of funds from M-PESA to KCB M-PESA to Target Savings account and vice versa is free.
“We have a role to play to raise the savings culture because of the potential economic benefits it ultimately holds for our customers. This is perfectly in line with our sustainability agenda of driving social performance in addition to financial performance,” said Mrs. Mwirigi.
“We want our customers to save more. A better savings culture increases customer financial health and ultimately, a higher capacity for borrowing when they get ready for a loan. It’s a win-win,” said KCB Bank Director, Marketing and Communications Angela Mwirigi.
To participate, customers will need to set targets on KCB M-PESA Target savings account and start saving towards the target. The saved amount will accrue an interest as well as increase the loan limit.
The initiative is expected to help boost the national domestic savings which currently stands at 6.1% since December 2018, compared with 6.5% in the previous year, according to the latest data by CEIC, a global data firm in UK. By contrast, neighboring Uganda and Tanzania have already crossed the 20% mark, even though their per capita income is significantly lower.
According to the World Bank, the culture of savings can only be stimulated by the government, households and companies.
KCB Bank has been at the forefront of innovation. Around 65% of KCB customers are on KCB digital banking which allows them to borrow, pay and save through mobile banking platforms.