In Kenya’s fast-paced economy, mobile lending platforms like MyKes have become essential for meeting urgent financial needs. Offering quick loans of up to Ksh 5,000, MyKes provides a solution for those who need money fast. However, repayment is crucial to avoid penalties or damage to your credit reputation. This guide covers how to repay a MyKes loan via Mpesa, the terms of the loan, what happens if you default, and additional insights to help you manage your loan effectively.
What is MyKes?
MyKes is a loan app operated by Deltech Capital Kenya Limited. It caters to Kenyans in need of instant credit through their mobile phones. The app offers loans with a 7-day repayment period at an interest rate of 32%, making it one of the more expensive options in Kenya’s digital lending market. Despite the high interest rate, its fast disbursement process has made it popular among those in urgent need of funds.
Step-by-Step Guide to Repaying MyKes Loan via Mpesa
Follow these simple steps to repay your MyKes loan using Mpesa’s Paybill feature:
- Access Mpesa Menu
On your Safaricom mobile device, go to the Mpesa menu. - Select Lipa na Mpesa
Choose the option “Lipa na Mpesa” from the menu. - Enter Paybill Number
Input 4047993 as the Business Number. This is MyKes’ official Paybill number. - Provide Account Details
Enter your phone number as the account number. Ensure that you use the number linked to your MyKes loan account. - Specify Repayment Amount
Enter the amount you wish to repay. You can choose to pay the full loan amount or a partial payment if the system allows it. - Confirm Payment
Double-check all details to ensure the payment is being made to Deltech Capital Kenya Limited. - Enter Mpesa PIN
Input your Mpesa PIN and press OK to complete the transaction.
You will receive an Mpesa confirmation message and a notification from MyKes confirming your repayment.
Terms of MyKes Loans
Before taking a MyKes loan, it’s essential to understand its terms:
- Loan Amount
MyKes offers loans ranging from small amounts up to Ksh 5,000. - Repayment Period
Loans are repayable within 7 days, making it a short-term credit facility. - Interest Rate
The platform charges an interest rate of 32% for the 7-day period, translating to Ksh 1,600 on a Ksh 5,000 loan. - Late Payment Penalty
Failing to repay on time results in an additional 2% penalty per day, significantly increasing the loan burden. - Privacy Concerns
MyKes has been criticized for contacting borrowers’ acquaintances listed in their phone contact list in case of default, which raises data privacy issues.
What Happens If You Fail to Repay a MyKes Loan?
Defaulting on your MyKes loan can have several consequences:
- Daily Penalties
For every day the loan is overdue, a 2% penalty is applied to the outstanding amount. This can quickly escalate the total repayment amount. - Contacting Your Network
MyKes is known for reaching out to individuals on your contact list, including family, friends, and colleagues, to remind you to repay. This practice can be embarrassing and harm personal relationships. - Listing on CRBs
Failure to repay the loan may result in your name being listed with Credit Reference Bureaus (CRBs), affecting your ability to access credit in the future. - Legal Action
Persistent non-repayment can lead to legal consequences, although this is usually a last resort.
Alternatives to MyKes Loans
While MyKes is convenient, its high-interest rates and strict repayment terms may not suit everyone. Consider these alternatives for quick loans in Kenya:
- Tala
Offers loans up to Ksh 30,000 with repayment periods of up to 30 days. - Branch
Provides loans ranging from Ksh 250 to Ksh 70,000 with flexible repayment terms. - Mshwari
Safaricom’s savings and loans service offers lower interest rates and a repayment period of 30 days. - KCB Mpesa
Allows borrowing between Ksh 500 and Ksh 1,000,000 at competitive interest rates.
MyKes Customer Support
If you experience issues with repayment or have questions about your loan, you can contact MyKes through the following channels:
- Phone: 0711 082 971 or +254 207 903 622
- Email: help@mykes.co.ke
- Location: Plot Number 209, Commodore Offices, Ngong Road, Kindaruma Lane
The support team is available to assist with repayment disputes, loan queries, and technical issues related to the app.
Tips for Managing MyKes Loans Effectively
- Borrow What You Can Repay
Only borrow amounts you are confident of repaying within the stipulated period to avoid penalties. - Set Reminders
Use phone alerts or apps to remind you of the repayment date to avoid missing deadlines. - Repay Early
If possible, repay your loan before the due date to minimize interest and avoid penalties. - Explore Cheaper Options
Consider alternative sources of credit or financial assistance that may offer lower interest rates. - Check CRB Status
Regularly monitor your credit report to ensure your loan history remains clean and error-free.
Challenges and Criticisms of Digital Lending Apps
While platforms like MyKes offer convenience, they have also been criticized for the following:
- High Interest Rates
Many digital lenders, including MyKes, charge exorbitant interest rates compared to traditional banking options. - Aggressive Debt Collection
Practices such as contacting individuals on a borrower’s contact list have been widely criticized for breaching data privacy. - Short Repayment Periods
The limited repayment window often causes borrowers to default, trapping them in a cycle of debt. - Lack of Regulation
Although the Central Bank of Kenya (CBK) has started regulating digital lenders, many continue to operate in ways that lack transparency.
MyKes loans can be a lifesaver in emergencies but come with significant financial responsibilities. By understanding the repayment process and adhering to it, you can avoid penalties, maintain your credit score, and protect your personal relationships from the embarrassment of default notifications.
