Pulse Kenya is the most followed news and entertainment platform in Kenya. It informs and engages young Kenyans around the clock and provides updates by the hour.

Pulselive Kenya

Safaricom explains reasons for surprise lock on Kenyans' M-Shwari savings accounts

Safaricom clarifies reason for surprise lock on Kenyans' M-Shwari savings accounts | Pulselive Kenya

Denis Mwangi

<ul><li>M-Shwari users in Kenya received messages about their savings accounts being locked due to defaulted loans</li><li>Customers are expressing frustration and confusion over the sudden account locks, some dating back several years</li><li>According to Safaricom, users will need to repay the loans linked to their accounts to access the locked balances</li></ul>

In recent days, numerous Kenyans have reported experiencing unexpected locks on their M-Shwari savings accounts due to defaulted loans, some of which date back several years.

This issue has sparked a wave of frustration and confusion among affected customers, who are now sharing their experiences on social media.

M-Shwari, a mobile banking service provided by Safaricom in partnership with <a data-link-role-code="open_new_tab" href="https://www.pulselive.co.ke/topic/ncba-group">NCBA</a>, allows users to save and borrow money via their mobile phones.

However, a series of messages received by customers have revealed that old, defaulted loans are leading to sudden account locks, often without prior warning.

One customer shared a message stating, "Dear Customer, we have placed a lock of Sh 457.67 on your M-Shwari Savings Account owing to a defaulted M-Shwari loan of Sh457.67. The loan was taken on 2018-04-30 from your old line 254xxxxx. We wish to issue you a 7-day notice to settle the loan, otherwise, we shall utilise the locked funds."

Kenyans have reported experiencing unexpected locks on their M-Shwari savings accounts

Another customer received a similar message but for a higher amount and an even older loan dating back to 2017.

The suddenness of these notifications has left many users disgruntled. Several customers took to social media to express their dissatisfaction, questioning the transparency and fairness of the process.

According to Safaricom, users will have to repay the loans linked to their accounts in order to access the locked balances. <a data-link-role-code="open_new_tab" href="https://www.pulselive.co.ke/business/safaricom-to-use-debt-collectors-to-go-after-loan-defaulters-in-new-faraja-product/4bxsw03">Failure will lead to an automatic deduction of the money</a>.

"Please repay the loan and the funds will be released within 48 hour after the repayment," one of the affected customers was informed.

Customers argue that they should receive clear and timely notifications about their loan statuses to avoid such surprises.

However, according to the M-Shwari Terms and Conditions, the bank has the right to use the money in a user's M-Shwari Deposit Account or any other account held to settle any outstanding debts owed.

"The Bank shall have a right of lien and set off over funds held by you in your M-Shwari Deposit Account, any other M-Shwari Account held by you and/or any other account held by you in the Bank," the terms and conditions read.

If you are among those affected by this issue, here are some steps you can take:

<ol><li>Contact Customer Service: Reach out to Safaricom's customer service for clarification on your account status and the reasons behind the lock.</li><li>Check Your Loan Records: Review your loan history to confirm the details of any outstanding loans.</li></ol>

Safaricom clarifies reason for surprise lock on Kenyans' M-Shwari savings accounts

Business

lifestyle

Entertainment

News

Politics

Local

World

Celebrities

Music

Movies

Sports 

Fashion

Beauty & Health

Relationships & Weddings

Food & Travel

Lifestyle

Domestic

International 

Explore categories

The Pulse Influencer Awards has been set up to recognize and highlight bright lights in the influencer space in Kenya who are building active engaged communities around their niche or craft.

Influencer Awards

Company Pages

Breaking News & Top Stories | Pulselive Kenya

Pulse Kenya

Video

Checkout our authors for the latest content across entertainment, sports, business and more. Be first to receive exclusive updates with your free subscription straight to your phone | Pulselive Kenya

Authors | Pulselive Kenya

| Pulselive Kenya

Read the latest news across entertainment, sports, business and more. Be first to receive exclusive updates with your free subscription straight to your phone | Pulselive Kenya

Search for the latest content across entertainment, sports, business and more. Be first to receive exclusive updates with your free subscription straight to your phone | Pulselive Kenya

Search Results | Pulselive Kenya

Watch the latest videos across entertainment, sports, business and more. Be first to receive exclusive updates with your free subscription straight to your phone| Pulselive Kenya