Diamond Trust Bank Kenya Limited (DTB) and Safaricom Plc have partnered to launch the Taasi Loan Product, a disruptive solution in the quickly changing world of digital finance.

Launched to empower M-PESA merchants across Kenya, this innovative loan service has gained traction for its seamless integration with the M-PESA platform, offering quick and affordable credit to businesses.

As digital lending continues to transform Africa’s financial ecosystem, the Taasi Loan Product stands out as a model of accessibility and efficiency.

What is the Taasi Loan Product?

The Taasi Loan Product is a tailored financial service designed for M-PESA merchants, blending the strengths of DTB’s banking expertise with Safaricom’s robust M-PESA infrastructure.

Governed by a comprehensive agreement, this product allows eligible customers to access loans through M-PESA Access Channels, including USSD, STK, or the M-PESA app.

The agreement, effective upon publication and supplemented by M-PESA Terms and Conditions, emphasises DTB’s role as the primary lender, with Safaricom facilitating access.

This partnership highlights a merchant-first approach, ensuring businesses can thrive with flexible credit options. For those exploring digital loans in Kenya, the Taasi Loan Product offers a compelling alternative to traditional banking.

READ ALSO:

What Kenyan MSMEs Need to Know About Safaricom’s 2025 Credit Expansion

Key Features and Eligibility

To qualify for the Taasi Loan Product, applicants must be registered M-PESA merchants, a criterion DTB can adjust with mandatory approvals.

Once enrolled via the Opt-In Function, customers gain access to a DTB Merchant Loan Product Account, where loans are disbursed and managed.

The loan amount ranges from a minimum of KES 1,000 to a maximum of KES 250,000, determined by DTB’s credit assessment, which considers factors like business transaction history, mobile money usage, and credit bureau data.

Interest rates are competitive, set at 5% for 14-day loans and 7% for 30-day loans, deducted from repayments.

This structure, combined with a median transaction speed of 1 second as seen in similar M-PESA-integrated services ensures merchants receive funds swiftly.

DTB’s discretion in approving or rejecting applications, however, highlights the need for merchants to maintain a strong financial profile.

How It Works: Loan Application and Repayment

Applying for a Taasi loan is straightforward. Merchants select the loan option on the M-PESA menu, and upon approval, funds are electronically disbursed to their accounts.

Repayment is equally seamless, with automatic deductions from the M-PESA wallet on the due date,14 or 30 days, depending on the loan term. A nominal fee of up to KES 3.00 may apply per scheduled deduction, incentivising timely payments.

DTB’s system allows partial or full repayments via the M-PESA Access Channels, with notifications prompting users to confirm amounts using their PIN.

In case of default, loans are classified as non-performing after 91 days, with DTB authorised to pursue recovery, including reporting to Credit Reference Bureaus. This rigorous process ensures accountability while protecting lenders.

Privacy and Security Measures

The Taasi Loan Product prioritises customer data security. By opting in, merchants consent to DTB accessing personal information, such as full name, ID number, mobile number, and M-PESA usage data,via Safaricom and the Integrated Population Registration System (IPRS).

This data fuels credit scoring and Know Your Customer (KYC) checks, enabling tailored loan limits.

DTB also reserves the right to share information with law enforcement, service providers, and credit bureaus for fraud prevention and commercial purposes.

While this transparency enhances trust, it underscores the importance of merchants understanding the terms, available on www.safaricom.co.ke and https://dtbkenya.com/, and seeking independent legal advice if needed.

Benefits and Risks for Merchants

For Kenyan merchants, the Taasi Loan Product offers unmatched convenience. Its integration with M-PESA, a platform handling 62 billion transactions in 2023 (per GSMA), ensures instant access to capital, supporting business growth in a region where mobile money dominates.

The low interest rates and flexible terms further appeal to small and medium enterprises (SMEs).

However, risks exist. DTB’s right to vary terms, suspend services, or pursue legal action in case of default requires merchants to stay vigilant.

Equipment malfunctions or network issues, beyond DTB’s control, could disrupt access, while the liability exclusion clause limits recourse for technical failures. Merchants must weigh these factors against the product’s benefits.

READ ALSO:

Understanding CRB and Credit Scores in Kenya: What Every Borrower Should Know

The Future of Digital Lending in Kenya

The Taasi Loan Product is set to capitalise on Kenya’s leadership in mobile money, with a market value of $133.2 billion in 2023, led by M-PESA. As DTB and Safaricom refine this offering, it could expand beyond merchants, potentially influencing digital lending trends across Africa.

For businesses seeking digital loans in Kenya, the Taasi Loan Product represents a forward-thinking solution. Its success will depend on DTB’s ability to balance innovation with customer support, ensuring merchants thrive in an increasingly digital economy.

Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, and digital finance at Africa Digest News.