Small and Medium Enterprises (SMEs) are the lifeblood of Kenya’s economy, contributing significantly to employment, innovation, and economic growth.

Despite their crucial role, access to affordable and reliable financing is one of the challenges hindering them from growing.

Statistics show that the SME credit denial rate in Kenya is at 60 percent highlighting a crisis in the sector.

Consulting firm Wylde International attributes the high financing gap to various issues including limited experience in running a business, lack of collateral, being listed on the Credit Reference Bureau, lack of consistency in the bank statements, and lack of business permit, among others.

According to Julius Ouma, the CEO of Faulu Microfinance Bank, one of the ways SMEs can improve their credit access capability is through partnerships with lenders.

Among the lenders that have been hailed for supporting SMEs is Absa Banks’s Timiza mobile app. The mobile-only platform is known for its affordable instant loans, high-interest savings, and cheap insurance cover.

Brian Muthomi, a fruit vendor in Zimmerman Nairobi says Timiza loans are reliable and attract the lowest interest rate.

Muthomi: How Timiza turned around my business from one to seven stalls in Nairobi

“I was introduced to Timiza by a friend of mine. They have good terms. I took my first loan three years ago. That is when I started my first business. The loan attracted one of the lowest interests I had ever seen. After paying the loan, I immediately took another one and kept on borrowing to expand my businesses,” he said.

According to him, one can access a loan of up to Sh150,000 repayable in 30 days. The more one transacts the more they grow and improve their Timiza credit limit. In addition, one gets discounts and loan limit growth on early repayment.

He however clarifies that to qualify for a loan, one must meet various requirements including being an active M-Pesa subscriber for at least 6 months before the date of application of the Loan.

Additionally, borrowers must have been actively using other Safaricom services such as data, voice, and M-Pesa services prior to the loan application.

A spot check by Bizna Kenya revealed that Timiza is operated entirely from mobile phone by dialing *848# or through the Timiza mobile app, which can be downloaded from the Google Play store or IOS app store.

To open a Timiza account, one needs to first register on Timiza for a transactional account. For first time loan application, borrowers are advised to launch the Timiza App on their phone or dial *848# to check their loan limit.

To repay the loan, borrowers can use Pay Bill number 300067 and enter their mobile number as the account number.