In Kenya, digital financing has become a cornerstone of personal and business growth, with Safaricom’s Mpesa leading the way. To meet the unique needs of Muslim customers, Safaricom, in partnership with Gulf African Bank, introduced Halal Pesa—the first-ever Shariah-compliant digital financing product in Kenya.
Halal Pesa operates on Islamic financial principles, specifically the Tawarruq model, which ensures customers receive financing without contravening Shariah law. This article provides a comprehensive guide on how to activate Halal Pesa, its features, limits, and repayment process, making it easier for you to take advantage of this innovative product.
What is Halal Pesa?
Halal Pesa is a Shariah-compliant financing solution designed for customers who avoid conventional loans due to interest charges, which are prohibited under Islamic law.
Key Features of Halal Pesa:
- Operates under the Tawarruq model, offering a facility rather than a loan.
- Exclusively available to Mpesa-registered users.
- Financed by Gulf African Bank, ensuring strict adherence to Shariah principles.
- Aims to empower Muslim customers while maintaining ethical financial practices.
Currently, Halal Pesa offers financing facilities only and does not include savings products.
Benefits of Using Halal Pesa
- Shariah Compliance: Designed specifically for customers seeking Islamic-compliant financing.
- Convenience: Accessible directly from your Mpesa account via USSD or the Mpesa app.
- Flexibility: Partial or full repayment options, allowing users to manage their finances easily.
- Inclusivity: Open to all Mpesa users, regardless of religion, though primarily tailored for Muslims.
How to Activate Halal Pesa
Activating Halal Pesa is straightforward and can be done via the Mpesa Super App or by dialing USSD codes.
Using the Mpesa App:
- Open the Mpesa app and navigate to the ‘Grow’ section.
- Select the Halal Pesa Mini App under the available options.
- Register by reviewing and accepting the terms and conditions.
- Enter your Mpesa PIN to confirm.
- You will receive a confirmation message notifying you of successful registration.
Using USSD (*334#):
- Dial *334# from your Safaricom line.
- Select ‘Loans and Savings.’
- Choose Halal Pesa from the menu.
- Follow the prompts to register.
- Accept the terms and conditions, then enter your Mpesa PIN.
- A confirmation message will be sent to you.
Halal Pesa Product Limits
Halal Pesa offers limits based on a user’s financial profile.
- Minimum Limit: Ksh 1,000.
- Maximum Limit:
- First-time customers: Ksh 15,000.
- Repeat customers: Ksh 20,000.
The qualifying limit depends on your Mpesa usage and transaction history.
How to Repay Halal Pesa
Repaying your Halal Pesa facility is as simple as activating it, with options for partial or full repayment.
Steps to Repay:
- Open the Halal Pesa Mini App or dial *334#.
- Navigate to the ‘Facility’ section.
- Select ‘Pay Facility.’
- Choose the specific facility you wish to repay.
- Choose between full payment or partial payment:
- For full payment, confirm and enter your Mpesa PIN.
- For partial payment, input the desired amount, confirm, and enter your Mpesa PIN.
- You will receive a confirmation message upon successful repayment.
Note:
If the facility is not repaid within the initial 30-day period, it will be restructured for another 30 days with a 5% profit rate charged on the principal amount.
Why Halal Pesa Stands Out
Halal Pesa is more than just a financing product; it is a step toward financial inclusivity in Kenya. By offering a service aligned with Shariah principles, Safaricom and Gulf African Bank have tapped into an underserved market segment.
How It Benefits Users:
- Promotes ethical financial practices.
- Encourages financial inclusion for Muslim customers.
- Supports small businesses and personal financial needs without burdening users with interest rates.
Frequently Asked Questions
1. Can non-Muslims use Halal Pesa?
Yes, Halal Pesa is available to all Mpesa users. While it adheres to Shariah principles, its facilities are open to everyone.
2. Are there additional charges beyond the profit rate?
No. The 5% profit rate is the only cost associated with extending the facility beyond the repayment period.
3. What happens if I fail to repay within 60 days?
Failure to repay after the 60-day period may result in restrictions on accessing future Halal Pesa facilities.
4. Is there a savings option under Halal Pesa?
Currently, Halal Pesa only offers financing facilities and does not include savings options.
Halal Pesa is a groundbreaking innovation in Kenya’s financial landscape, empowering users with ethical, Shariah-compliant financing. Whether you need funding for personal or business use, Halal Pesa ensures that you can access it conveniently and responsibly.
If you haven’t activated Halal Pesa yet, take the first step today! Dial *334# or download the Mpesa app and navigate to the ‘Grow’ section to register.
Safaricom and Gulf African Bank are proving that financial services can be inclusive and respectful of diverse beliefs. Stay ahead of the curve by embracing the future of digital financing with Halal Pesa!
