KCB M-Pesa Charges 2026

Created: 29 Sep 2025   Updated: 24 Jan 2026

KCB M-Pesa offers a compelling proposition for Kenyan mobile money users with its free transfers between M-Pesa and KCB M-Pesa accounts, competitive interest rates on savings, and instant loan access. The key to maximizing value is understanding the charges—particularly the 8.93% loan facility fee and the importance of maintaining account activity to access better loan limits.

By leveraging the free transfer feature and utilizing the savings accounts effectively, users can grow their money while maintaining the flexibility and convenience of mobile banking. Always remember to save regularly to improve your credit score and unlock higher loan limits over time.

Key Charges and Fees

1. Account Opening and Maintenance

Account Activation: FREE

  • There are no charges for opening or activating a KCB M-Pesa account
  • The minimum amount to begin saving is KES 50

2. Transfer Charges Between M-Pesa and KCB M-Pesa

One of the most significant advantages of KCB M-Pesa is the zero transfer charges between your M-Pesa account and your KCB M-Pesa account.

Deposits into KCB M-Pesa Account: FREE

  • Transfer money from M-Pesa to KCB M-Pesa at no cost
  • Minimum deposit: KES 1
  • Maximum deposit per transaction: KES 70,000 (from M-Pesa)
  • Maximum daily deposit: KES 140,000 (from M-Pesa)

Withdrawals from KCB M-Pesa to M-Pesa: FREE

  • No transaction fees when moving money from KCB M-Pesa to M-Pesa
  • Subject to M-Pesa withdrawal limits

Important Note: While transfers between M-Pesa and KCB M-Pesa are free, transactions between other KCB bank accounts and KCB M-Pesa, or transactions facilitated through KCB Mtaani agents, will attract standard bank fees.

3. Loan Charges

Facility Fee: 8.93%

  • KCB M-Pesa loans attract a facility fee of 8.93% of the loan amount
  • This fee is deducted upfront when the loan is disbursed
  • Loan amounts range from KES 100 to KES 1,000,000
  • Repayment period: 30 days (1 month)

Interest Rate Calculation: According to the official terms and conditions, the loan is issued net of interest and negotiation fees calculated at 2.5% of the amount borrowed. The monthly interest rate is set at no more than 4% per annum above the prevailing Central Bank Rate (CBR).

Example: If you borrow KES 10,000:

  • Facility fee (8.93%): KES 893
  • Amount credited to your account: KES 9,107
  • Amount to repay: KES 10,000

4. Savings Account Charges

Fixed Savings Account:

  • Opening: FREE
  • Minimum deposit: KES 500
  • Interest rate: 6.3% per annum
  • Available terms: 1, 3, 6, or 12 months
  • Early withdrawal penalty: You forfeit all accrued interest

Target Savings Account:

  • Opening: FREE
  • Minimum target: KES 1,000
  • Minimum contribution: KES 50 per deposit
  • Interest rate: 6.3% per annum
  • Available terms: 1 to 12 months
  • Early withdrawal: Allowed with accrued interest earned up to withdrawal date

5. Account Statements

Mini Statement:

  • Available via SMS or electronic delivery
  • Shows last 4 transactions
  • Any SMS charges by Safaricom apply (typically around KES 2 per SMS)

Printed Statements:

  • Available at KCB branches
  • Standard bank statement charges apply

6. Dormant Account Charges

  • An account becomes inactive after 12 months of no transactions
  • An account becomes dormant after 24 months of no transactions
  • Dormant accounts may attract maintenance fees as determined by the bank

How to Access KCB M-Pesa Services

Activation Steps

You can activate KCB M-Pesa through four channels:

1. M-Pesa App:

  • Login to M-Pesa account
  • Select "Grow" on the navigation bar
  • Select "KCB M-Pesa"
  • Select "Activate"

2. MySafaricom App:

  • Login to MySafaricom App
  • Click on "M-Pesa" on navigation bar
  • Select "Loans and savings"
  • Enter M-Pesa PIN
  • Select "KCB M-Pesa"
  • Click "Activate"

3. Safaricom SIM Toolkit (STK):

  • Access M-Pesa menu
  • Select "Loans and Savings"
  • Select "KCB M-Pesa"
  • Select "Activate"

4. USSD Code:

  • Dial *334#
  • Select "Loans and Savings"
  • Select "KCB M-Pesa"
  • Select "Activate"

Deposit and Withdrawal Procedures

Making a Deposit from M-Pesa to KCB M-Pesa

Step-by-Step Process:

  1. Go to the KCB M-Pesa menu
  2. Select "Deposit from M-Pesa"
  3. Enter the amount
  4. Enter your M-Pesa PIN
  5. Confirm the transaction
  6. Your M-Pesa will be debited and KCB M-Pesa credited instantly

Remember: This transaction is FREE

Making a Withdrawal from KCB M-Pesa to M-Pesa

Step-by-Step Process:

  1. Go to the KCB M-Pesa menu
  2. Select "Withdraw to M-Pesa"
  3. Enter the amount
  4. Enter your M-Pesa PIN
  5. Confirm the transaction
  6. Your KCB M-Pesa account will be debited and M-Pesa credited instantly

Remember: This transaction is also FREE

Loan Application Process

How to Request a KCB M-Pesa Loan

Requirements:

  • Be 18 years or older
  • Have been an M-Pesa subscriber for at least 6 months
  • Have an active KCB M-Pesa account
  • Actively use Safaricom services (voice, data, M-Pesa)

Application Steps:

  1. Go to M-Pesa menu
  2. Select "Loans and Savings"
  3. Select "KCB M-Pesa"
  4. Select "Request Loan"
  5. Enter amount
  6. Follow prompts to complete

Loan Repayment: Repay via M-Pesa, KCB M-Pesa account, KCB branch, or KCB Mtaani agent using Paybill Number 522559 with your ID number as the account number.

Savings Account Options

Fixed Savings Account Features

  • Lock funds for 1, 3, 6, or 12 months
  • Minimum deposit: KES 500
  • Maximum deposit: KES 1,000,000
  • Interest rate: 6.3% per annum
  • Early withdrawal permitted but forfeits all interest
  • Funds automatically roll over at maturity unless otherwise instructed

Target Savings Account Features

  • Set a savings goal to achieve over 1 to 12 months
  • Minimum target: KES 1,000
  • Minimum contribution: KES 50
  • Interest rate: 6.3% per annum
  • Can add funds anytime until target is reached
  • Early withdrawal allowed with accrued interest
  • Can only have one target savings account at a time

Transaction Limits

Deposit Limits

  • From M-Pesa: Maximum KES 70,000 per transaction, KES 140,000 per day
  • Via KCB Mobi and Agents: Minimum KES 100, Maximum KES 100,000
  • Via Bank Branches: No maximum limit
  • Account Maximum: KES 1,000,000 (additional documentation required for deposits above KES 250,000)

Withdrawal Limits

  • Subject to M-Pesa service limits
  • Can withdraw up to KES 150,000 at a time
  • No overdrawing permitted on KCB M-Pesa accounts

Eligibility Requirements

To qualify for KCB M-Pesa services, you must:

  1. Hold a Kenyan National ID and be registered on M-Pesa using the same
  2. Be a registered Safaricom M-Pesa customer
  3. Actively use Safaricom services including voice, data, and M-Pesa
  4. Be at least 18 years old

Note: Customers registered on M-Pesa using passport numbers cannot activate KCB M-Pesa and must visit a Safaricom shop to update their registration details with their National ID.

Important Considerations

Benefits of KCB M-Pesa

  1. Zero transfer charges between M-Pesa and KCB M-Pesa
  2. Competitive interest rates on savings (6.3% p.a.)
  3. Instant loan access without paperwork
  4. No branch visits required
  5. Flexible savings options
  6. Start saving with as little as KES 1

Things to Watch Out For

  1. Loan facility fee of 8.93% is significant - ensure you understand the net amount you receive
  2. Fixed savings early withdrawal results in complete loss of interest
  3. Accounts become inactive after 12 months of no activity
  4. For savings above KES 250,000, additional documentation is required
  5. Multiple registrations using the same ID are not allowed
  6. Customers not active on M-Pesa for 6+ months will have zero loan limit initially
Beth Wahinya
Written by Beth Wahinya
John Kariuki
Reviewed by John Kariuki

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