In a major boost for Kenya’s Micro, Small and Medium Enterprises (MSMEs), Diamond Trust Bank (DTB) has partnered with Safaricom PLC to launch Taasi Till Loans, a short-term business credit facility designed specifically for merchants using Safaricom’s Lipa na M-Pesa tills.
The product will offer loans of up to KSh 250,000, repayable within 14 days, providing fast and flexible credit to support small businesses’ operational needs. The facility is expected to significantly improve working capital for thousands of merchants across the country.
The launch follows a successful pilot phase involving over 23,000 Lipa na M-Pesa merchants, during which over KSh 135 million was disbursed. Merchants borrowed an average of KSh 17,500, underlining the product’s relevance and potential in solving real-world liquidity challenges for MSMEs.
“At DTB, we are keen to play our part in unlocking the development of MSMEs across the country. Through this partnership, we aim to extend a much-needed credit line to these small businesses, which often need quick and short-term credit as the lifeline of their daily operations,” said Murali Natarajan, Managing Director and CEO of DTB.
MSMEs contribute over 30% to Kenya’s GDP and employ over 80% of the country’s workforce, yet they often face challenges accessing timely credit. Most traditional bank products require collateral, lengthy approval times, or high interest rates—factors that many MSMEs struggle to meet.
“Businesses play a pivotal role in Kenya’s economy and make a significant impact in our communities. Leveraging the power of technology, Taasi will offer convenience and access to credit for MSMEs, allowing them to focus on scaling their businesses,” noted Dr. Peter Ndegwa, Group CEO of Safaricom PLC.
The Taasi Till Loans product is available to Lipa na M-Pesa merchants who meet certain usage and transaction criteria. Here’s how it works:
- Eligibility: Merchants with a history of consistent transactions via Lipa na M-Pesa.
- Loan Limits: Up to KSh 250,000, determined by the merchant’s transaction volume.
- Repayment Period: 14 days from the date of disbursement.
- Access: Instant approval and disbursement through an automated digital platform.
- Repayment: Deducted from till payments or via manual payments if needed.
This seamless integration leverages Safaricom’s mobile technology and DTB’s lending infrastructure, providing a first-of-its-kind solution tailored to the daily cash flow dynamics of MSMEs.
The lack of access to formal credit remains a top challenge for Kenyan MSMEs. According to the Central Bank of Kenya, over 80% of MSMEs rely on informal lenders, often paying exorbitant interest rates or risking asset seizures.
With a product like Taasi Till Loans:
- Financial inclusion expands for merchants previously shut out of formal credit markets.
- Digital credit becomes more transparent, regulated, and accountable.
- Business sustainability increases, especially during cash flow gaps or emergency expenses.
This initiative adds to a growing list of digital tools aimed at MSMEs in Kenya:
- Fuliza ya Biashara by Safaricom, offering overdrafts for business accounts.
- M-Pesa Business App, allowing merchants to track transactions and access reports.
- DTB’s SME lending programs, including asset finance and working capital loans.
Together, these tools are helping digitize Kenya’s MSME ecosystem, reduce reliance on cash, and foster a credit culture that is fair and scalable.
DTB has made SME banking a core part of its business strategy. In recent years, the bank has:
- Opened over 20 new branches in key business towns across Kenya.
- Rolled out digital onboarding and lending platforms to reduce paperwork and bureaucracy.
- Partnered with fintechs and mobile operators to reach informal and semi-formal traders.
“Our goal is to drive development and economic growth by making our services easily accessible to MSMEs across the country. We’ve achieved this by expanding our branch network, enhancing our digital platforms, and now, through this partnership with Safaricom, by offering a targeted solution to the financing challenges MSMEs face,” added Mr. Natarajan.
For Kenya’s small business owners—who often operate on razor-thin margins and rely on quick turnarounds—access to short-term digital credit could mean the difference between survival and closure.
By combining data-driven credit scoring with real-time mobile banking, DTB and Safaricom are:
- Democratizing access to business finance
- Reducing turnaround times for loan approvals
- Helping MSMEs scale sustainably and compete more effectively
The launch of Taasi Till Loans marks a significant milestone in Kenya’s journey toward financial inclusion, digital transformation, and MSME empowerment. With the support of institutions like DTB and Safaricom, small businesses are not only being recognized but also being equipped with tools to thrive in a fast-changing economy.
As Kenya’s digital economy matures, such partnerships could pave the way for a broader credit revolution, especially for informal traders, rural businesses, and women-owned enterprises—groups historically excluded from formal banking.
