The evolving banking landscape is making it easier for businesses to access credit, with mobile technology increasingly removing the need for entrepreneurs to visit bank halls every time they require working capital.
Through mobile banking applications, businesses can apply for loans, receive funds and make repayments from their phones, giving entrepreneurs greater flexibility in managing day-to-day cash-flow needs.
The shift is particularly significant for micro, small and medium enterprises (MSMEs), which often require relatively quick access to funds to purchase stock, meet operating expenses or take advantage of emerging business opportunities.
Among the lenders that have placed MSMEs at the centre of their strategy is Co-operative Bank of Kenya, which has continued to expand its digital lending capabilities alongside conventional business financing.
According to its 2025 financial results, the bank disbursed Sh72.96 billion through its E-Credit platform during the year, with Sh10.43 billion of the amount going directly to MSMEs.
Co-op Bank said more than 259,000 MSMEs had been onboarded onto its tailored packages, while the segment accounted for 16.8 per cent of its loan book.
The figures underline the growing role of digital credit in the bank’s lending model. Overall, Co-op Bank’s loans and advances rose to Sh421 billion at the end of 2025, while digital and alternative channels accounted for 93.9 per cent of transaction volumes.
The mobile phone as a lending channel
Co-op Bank’s digital transformation has increasingly put banking services within reach of customers without requiring a physical branch visit.
The bank’s revamped mobile banking platform, now known as the Co-op Bank App, is designed to provide customers with access to a range of banking services, including digital credit.
One of the credit products available on the app is the Co-op Bank App Business Plus Loan, available to customers who have operated an active Co-op Bank business account for at least six months.
Eligibility is influenced by factors including account activity, borrowing and repayment history and the customer’s Credit Reference Bureau (CRB) profile.
The facility allows qualifying customers to apply for amounts ranging from as little as Sh100 to a maximum of Sh1 million, depending on turnover and credit assessment.
How to apply for Co-op Bank Business Plus Loan
Customers can access mobile loans through the Co-op Bank App, the bank’s web platform or by dialling *667#. Customers registering for the app require a National ID or valid passport number, after which their business account must be linked to the application at a Co-op Bank branch.
Once the account is linked and the customer qualifies, the loan application can be made through the app. Approved funds are deposited into the customer’s Co-op Bank account, after applicable charges have been deducted.
The facility attracts a one-off appraisal fee of three per cent of the amount applied for, with excise duty of 20 per cent on the appraisal fee.
Interest is charged at four per cent per month of the amount applied for, while credit-life insurance is charged at 0.034 per cent per month.
The funds can subsequently be accessed through Co-op Bank ATMs or Co-op Kwa Jirani agents. Customers can also transfer the money directly to their own M-Pesa account or to another person’s M-Pesa account.
According to Co-op Bank, maintaining a good repayment record can help a customer retain or grow their borrowing limit, while consistent business account activity can contribute to future credit assessment.
Customers can also strengthen their business transaction profile by using Co-op Till to receive payments. The bank indicates that increased transactional activity can enhance the customer’s score and potentially increase the Business Plus loan limit.
The facility offers repayment periods of up to six months. Customers may also qualify for top-ups and refinancing on existing facilities, subject to the bank’s assessment and applicable terms.
The lender warns that a negative CRB record, an overdrawn business account or outstanding Co-op Bank loan arrears can result in an application being declined.
Customers who fail to repay as required may also have their credit information submitted to a CRB.
How to repay the loan through mobile phone
Customers can initiate repayments from a linked Co-op Bank account or through M-Pesa.
Through the Co-op Bank App or *667#, a borrower selects the loans option, proceeds to loan repayment and follows the instructions provided. The same digital channel can be used to check the outstanding loan balance.
The bank’s current digital lending terms also provide for top-ups and refinancing on existing E-Credit facilities, subject to eligibility and the applicable product terms.
Also Read: Why the Co-op Money Market Fund is worth considering
