M-Shwari Charges: Complete Fee Structure and Costs Guide

Regular M-Shwari Savings Account Charges

No Monthly Fees: One of the key benefits of M-Shwari is that there are no monthly maintenance fees or ledger fees charged on the basic savings account.

Free Services Include:

• Account opening and activation - Completely free
• No minimum balance charges - You can maintain any balance without penalties
• No limits on withdrawal frequency - Make as many withdrawals as needed without additional fees
• Deposits from M-PESA to M-Shwari - No charges for transferring money from M-PESA to your M-Shwari account
• SMS notifications - Transaction confirmations sent at no extra cost

Transaction-Based Charges

• Balance inquiry: Ksh 1 per inquiry
• Mini statement: Ksh 1 per request
• M-PESA transaction charges: Normal M-PESA tariffs apply for transfers between M-PESA and M-Shwari

M-Shwari Locked Savings Account Charges

Lock Savings Features

Completely Free: There are no charges levied on the M-Shwari Lock Savings account, making it an attractive option for customers seeking higher interest rates.

Free Services Include:

• Account opening - No setup fees
• Monthly maintenance - No recurring charges
• Interest calculations - No fees for earning interest
• Maturity notifications - SMS alerts sent at no cost

Associated Costs

• Balance checks: Ksh 1 per inquiry through the Lock Savings System
• Mini statements: Ksh 1 per request for Lock Savings transactions

M-Shwari Loan Charges and Fees

Loan Facilitation Fee Structure

M-Shwari loans are subject to a comprehensive fee structure that includes both facilitation fees and government taxes.

Primary Loan Charges

Facilitation Fee: 7.5% of the loan amount (one-time charge) Excise Duty: 1.5% of the loan amount Total Loan Cost: 9% of the borrowed amount (7.5% + 1.5%)

How Loan Charges Work

Example: If you borrow Ksh 1,000:

• Loan amount received: Ksh 1,000 (full amount if you qualify)
• Facilitation fee: Ksh 75 (7.5% of Ksh 1,000)
• Excise duty: Ksh 15 (1.5% of Ksh 1,000, deducted from loan amount)
• Total amount to repay: Ksh 1,075
• Amount sent to M-PESA: Ksh 985 (Ksh 1,000 minus Ksh 15 excise duty)

Important Loan Fee Details

• No Interest Charges: M-Shwari loans do not attract interest - the 7.5% is purely a facilitation fee
• One-Time Fee: The facilitation fee is charged only once per loan, regardless of when you repay
• Early Repayment: Paying early does not reduce the facilitation fee, but improves your future loan limit qualification
• Repayment Period: 30-day repayment period for all loans

Late Payment Charges

Extended Repayment Period: If you don't repay within 30 days:

• Additional 30 days granted automatically
• Additional facilitation fee: 7.5% charged on the outstanding loan balance
• Total cost increases significantly with late payment

Multiple Loan Restrictions

• No concurrent loans: You cannot take another loan until the current one is fully repaid
• Frozen savings: When you have an outstanding loan, savings equal to the loan amount plus fees are frozen in your account

M-Shwari Statement and Documentation Charges

Free Annual Statement

One free statement per year: You can request one comprehensive bank statement annually at no charge from any Safaricom retail shop.

Additional Statement Charges

• Extra printed statements: Ksh 25 per page for any statements beyond your free annual statement
• Over-the-counter service: Additional statements must be collected at Safaricom retail centers
• Processing: Statements are usually available immediately upon request

Digital Statement Access

Free digital access:

• Mini statements: Last 5 transactions viewable through mobile menu
• MySafaricom App: Extended transaction history at no charge
• Web self-care: M-Shwari transactions included in M-PESA statements online

M-shwari Account Management Charges

Account Closure

Free account closure: You can close your M-Shwari account at any time without charges at any Safaricom Customer Care Center.

Closure Process:

• Credit balance: Any remaining funds returned to you less applicable fees
• Outstanding loans: Must be settled immediately before account closure
• No termination fees: No penalties for closing the account

Legal and Administrative Charges

According to the terms and conditions, customers may be liable for:

• Legal charges: Including advocate and client costs if the bank requires legal advice
• Recovery costs: Expenses incurred in legal proceedings related to your account
• Administrative fees: Any fees related to account disputes or investigations

M-Shwari Fee Structure Summary Table

Tips for Minimizing M-Shwari Charges

Smart Usage Strategies

• Use mini statements sparingly: Check balance only when necessary to avoid Ksh 1 charges
• Maintain good loan repayment: Avoid late payment fees by repaying on time
• Request annual statements: Take advantage of free yearly statements for record keeping
• Use MySafaricom App: Access extended transaction history at no charge

Cost-Saving Practices

• Plan loan amounts carefully: Understand total cost before borrowing
• Save regularly: Build savings to reduce loan dependency
• Monitor SMS notifications: Track transactions without additional balance inquiries
• Keep digital records: Screenshot important transactions to reduce statement requests

Important Disclaimers

Fee Changes

• Bank discretion: The bank may modify fees with reasonable notice to customers
• Regulatory changes: Government tax changes may affect excise duty rates
• Inflation adjustments: Fees may be adjusted periodically to reflect economic conditions

Terms and Conditions

• Acceptance: Using M-Shwari services constitutes acceptance of all charges
• Automatic deduction: Fees are automatically deducted from your M-PESA or M-Shwari account
• No refunds: Service charges are generally non-refundable once applied