How M-Shwari Recovers Loans Borrowed on Recycled Phone Numbers

M-Shwari, a joint product of Safaricom and NCBA Bank, has addressed concerns regarding loan responsibility when users acquire phone numbers that have been previously used.

A section of Kenyans had expressed concerns that taking a number previously used by an M-Shwari loan borrower could make them liable for outstanding defaults.

Kenyans use the service for instant loans and savings through M-Pesa.

Mshwari Addresses on Recycled Numbers and IDs

M-Shwari has confirmed that all loans are linked and tied to a user’s ID, not their phone number.

Also Read: Safaricom to Launch Feature That Allows Someone to Spend Directly from Your M-PESA

The service’s loan system operates based on a user’s national ID, meaning every loan is linked directly to the identification number used at registration.

The phone number registered during the loan application serves only as a point of contact and does not determine liability.

This system ensures that even if a phone number changes hands, any existing debts or missed payments remain connected to the original owner’s ID.

When someone acquires a Number that was previously used for the loan service, the debt is not inherited by the new user.

“If you receive a recycled phone number that was previously used by someone else, you are not responsible for their loan. Their default remains linked to their ID, not yours,” stated M-shwari.

To check which numbers are linked to your ID, M-Shwari stated that users can dial *106# on their mobile phones.

M-Shwari CRB Listings and Bank Recovery 

Any loan defaults or late payment penalties are linked to the borrower’s credit record, ensuring new users are not penalized.

The bank also has the right to retain and recover outstanding funds from any account or number registered under the same ID, but not from a customer who acquires a number after it was registered.

Eligibility to Have an M-Shwari Account

To save and earn interest with M-Shwari, you must be a registered and active M-PESA subscriber for a minimum of six months. 

Also Read: M-PESA Guide on How to Join Shiriki Pay, Add Users, and Register a Beneficiary

Through M-Shwari, users can open a savings account directly from their phone, transfer funds between M-Shwari and M-PESA, and earn interest on deposits. M-Shwari savings accounts allow you to save for a specific goal at competitive interest rates.

Before starting your savings journey with M-Shwari, you need to activate your account. To do this, go to the M-PESA menu on your phone or open the MySafaricom App.

Select “Loans and Savings” and then choose “M-Shwari.” You will be prompted to activate your M-Shwari account, after which you should accept the terms and conditions.

Once this is done, you will receive a confirmation message from M-Shwari confirming that your account is active and ready for use.

To save with Mshwari, follow these steps.

1. Go to your M-PESA menu on your phone or the MySafaricom App.
2. Select “Loans and Savings,” then choose “M-Shwari”.
3. Select the option to “Send to M-Shwari” or “Send to Bank”.
4. Enter the amount of money you wish to save. 
5. Follow the prompts to confirm the transaction. 
6. Confirm the transaction. The money will be moved from your M-Pesa account to your M-Shwari account.

To earn interest with M-Shwari, there are two main ways to save: the regular M-Shwari account and the M-Shwari Lock Savings Account.

For the regular M-Shwari account, any money you deposit earns interest automatically, depending on how much you save. The more you save, the higher the interest rate, with returns of up to 6.3% per year.

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