Using debt collectors, Safaricom plans to recover unpaid Lipa na M-Pesa debt Loans
Safaricom had previously banned defaulters on credit reference bureaus (CRBs), but the new strategy was implemented in response to a high default rate for mobile loans.
The massive telecommunications corporation announced in a statement that it would take measures to collect loans that were not repaid by the specified deadlines. For the fiscal year that ended in March 2022, Safaricom’s M-Pesa services generated KSh 50 billion in gross profit.
In the event of default, massive telecommunications operator Safaricom would use auctioneers to recoup unpaid Lipa na M-Pesa loans.
The change means that if debtors don’t pay their debts on time, they risk losing their assets.
The telco had previously banned defaulters on credit reference bureaus (CRBs), but the new approach was implemented in response to a high default rate for mobile loans.
The business said in a statement that it will pursue legal action to collect loans that were not repaid by the specified deadlines.