Safaricom's Halal Pesa 2024: Benefits, Rates, and Activation in Kenya

Unlock the benefits of Safaricom's Halal Pesa: Shariah-compliant loans with easy activation and affordable rates in Kenya.

Feb 9, 2024 - 12:38
Safaricom's Halal Pesa 2024: Benefits, Rates, and Activation in Kenya
Safaricom's Halal Pesa 2024: Benefits, Rates, and Activation in Kenya

In the digital landscape of Kenya, Safaricom's Halal Pesa emerges as a hope of innovation, carving out a niche for Shariah-compliant financial solutions. This pioneering service, a collaborative effort between Safaricom and Gulf African Bank, marks a significant milestone in Kenya's mobile financing sector. Halal Pesa is designed to cater to the needs of M-Pesa users seeking interest-free credit, adhering to the principles of Shariah law. It offers a unique proposition: access to financing without the burden of conventional interest rates, thus aligning with the ethical and religious convictions of its users​​​​.

The significance of Halal Pesa extends beyond its compliance with Islamic financing principles. It represents a broader commitment to financial inclusion, ensuring that all segments of Kenyan society have access to digital financial services. By providing a 5% profit margin instead of traditional interest rates and setting a repayment period of 30 days, Halal Pesa positions itself as an accessible and affordable credit option. This service not only addresses the financial needs of Kenya's Muslim community but also offers a viable alternative for anyone looking for ethical financial products​​​​. This blog post delves deep into the benefits, loan interest rates, and the activation process of Halal Pesa in 2024.

READ ALSO: Safaricom Halal Pesa 2024: How To Register, Loan Amounts, Interest Rates And Repayment Process 

Understanding Halal Pesa

In March 2022, Safaricom, Kenya's leading telecommunication giant, in partnership with Gulf African Bank, unveiled Halal Pesa. This initiative marked a significant stride towards inclusive finance, introducing the first Shariah-compliant mobile financing solution in the country. Halal Pesa was designed with the principles of Shariah law at its core, offering a no-interest financing model to its users. Instead of traditional interest rates, the service operates on a profit margin basis, adhering to Islamic financial principles​​​​.

The genesis of Halal Pesa stems from a recognized need within the Kenyan financial landscape. A considerable portion of Safaricom's customer base, adhering to Islamic faith, sought financial services that aligned with their religious beliefs. In response, Halal Pesa was developed, reflecting Safaricom's dedication to accommodating the diverse financial needs of all Kenyans, ensuring no one is left behind in the digital financial realm​​.

Benefits of Halal Pesa

Halal Pesa introduces several key benefits aimed at promoting financial inclusion and ethical financing:

  • Shariah-Compliant: Central to Halal Pesa's appeal is its compliance with Shariah law, which prohibits the charging of interest. By offering a financing model based on the Murabaha (cost-plus profit) principle, Halal Pesa provides a viable, interest-free credit option to its users, making it particularly attractive to Kenya's Muslim population​.
  • Financial Inclusion: Beyond its religious adherence, Halal Pesa plays a critical role in bridging the financial inclusion gap. It extends financial services to segments of the population previously underserved by traditional banking systems. This initiative aligns with Safaricom's broader strategy of leveraging digital technology for financial inclusion, offering instant access to credit for various financial needs​​​​.
  • Accessible and Affordable Credit: With a straightforward profit margin of 5% and a 30-day repayment period, Halal Pesa positions itself as an accessible and affordable credit option. This straightforward approach contrasts sharply with more conventional loan products that might impose higher interest rates and more complex repayment structures. The service's affordability and transparency are pivotal in attracting users looking for simple and ethical financing solutions​​​​.
  • Enhanced Credit Limits: Halal Pesa encourages financial responsibility and rewards it by offering increased credit limits to users based on their transaction history and financial behavior. This feature motivates users to maintain healthy financial habits, such as timely repayments, to access higher credit limits over time​​.

Loan Interest Rates and Terms

How Halal Pesa Works

Halal Pesa operates on a unique financial model that distinguishes it from conventional loan products. Instead of charging interest, which is prohibited under Shariah law, Halal Pesa utilizes a profit margin, known as the Murabaha margin. This model is a form of Islamic financing where the bank purchases a commodity and sells it to the customer at a profit, avoiding the concept of interest entirely. The profit margin for Halal Pesa is set at 5%, payable after 30 days. This innovative approach allows Safaricom to offer Shariah-compliant financing while ensuring the product remains accessible and affordable to its users​​.

The model's appeal lies in its simplicity and transparency. When a customer requests financing through Halal Pesa, they are immediately aware of the total amount that needs to be repaid at the end of the 30-day period. For instance, if a user borrows KES 1,000, they would be required to repay KES 1,050 after 30 days, reflecting the 5% profit margin. This clarity ensures that customers can make informed decisions about their financing needs without worrying about fluctuating interest rates or hidden fees​​.

Loan Limits and Eligibility

Halal Pesa introduces a structured approach to loan limits and eligibility, aimed at fostering financial discipline and rewarding responsible financial behavior. The service sets a minimum loan amount of KES 1,000 and a maximum limit that starts at KES 15,000 for first-time customers. However, this limit can increase to KES 20,000 for repeat customers, depending on their creditworthiness and transaction history with M-Pesa​​.

To become eligible for Halal Pesa, users must be registered M-Pesa customers. The initial loan limit is determined based on the customer's M-Pesa transaction history, emphasizing the importance of an active M-Pesa account. Users can increase their loan limit over time through consistent use of M-Pesa services, timely repayment of Halal Pesa facilities, and maintaining a positive credit history. This approach incentivizes users to engage more with Safaricom's digital financial services while ensuring they manage their finances responsibly​​.

Activation and Access

Activating Halal Pesa

Gaining access to Halal Pesa is straightforward, designed to ensure that all eligible M-Pesa users can quickly activate and utilize the service. Activation can be done through two primary channels: the M-Pesa Super App and the USSD code. Here's how you can activate Halal Pesa using either method:

  • Via M-Pesa Super App: Users with the M-Pesa app can navigate to the "Grow" section, where they will find the Halal Pesa Mini App option. Tapping on this option initiates the registration process, which is user-friendly and guided. It's essential to ensure that you are using the latest version of the M-Pesa mobile application to access all its features, including Halal Pesa​​.
  • Using USSD Code: For users who prefer or need to use USSD, dialing *334# on their mobile phone provides access to a range of M-Pesa services, including Halal Pesa. Once in the menu, select "Loans and Savings," followed by "Halal Pesa," and then "Register." Users will be presented with terms and conditions for the service, which they must agree to proceed. After entering their M-PESA Pin, they will receive a confirmation message from Halal Pesa, signifying successful registration​​.

Managing Halal Pesa Loans

Once activated, managing Halal Pesa loans is equally straightforward, emphasizing user convenience and accessibility:

  • Applying for a Loan: To apply for a loan, users can either use the Halal Pesa Mini App within the M-Pesa Super App or access the service via the *334# USSD code. The process is intuitive, with prompts guiding the user through loan application steps, including selecting the desired loan amount within the personalized limit offered.
  • Repayment: Halal Pesa loan repayment is flexible, allowing users to repay their loans using the M-Pesa Super App or the *334# USSD code. In the app, users navigate to the Halal Pesa Mini App section and follow the prompts to "Pay Facility." Similarly, through USSD, users can select "Loans and Savings," then "Halal Pesa," and finally "Pay Facility" to enter the amount and complete the transaction with their M-Pesa PIN​​.
  • Checking Loan Limits: Knowing your loan limit is crucial for planning your borrowing needs. Halal Pesa allows users to check their current loan limit through the M-Pesa Super App or by dialing *334# and following the prompts to "Check Limit." This feature helps users stay informed about their borrowing capacity, ensuring they make financially prudent decisions​​.

READ ALSO: Safaricom Halal Pesa 2024: How To Register, Loan Amounts, Interest Rates And Repayment Process


Q: How is Halal Pesa different from other loan products?

A: Halal Pesa is unique because it adheres to Shariah principles, specifically the Tawarruq model, making it interest-free. Unlike conventional loans that charge interest, Halal Pesa applies a 5% profit margin on the amount financed. This Shariah-compliant approach distinguishes it from other products by offering ethical financing to its users​​.

Q: Who is eligible for Halal Pesa?

A: All registered M-Pesa users are eligible to apply for Halal Pesa. The service is designed to be inclusive, catering to the financial needs of Kenya's diverse population, including those seeking Shariah-compliant financing options​​.

Q: What happens if I can't repay my Halal Pesa loan on time?

A: If a loan is not repaid by day 31, Halal Pesa offers a restructuring option where the loan is rolled over into a new facility with an additional 5% profit on the principal amount. This feature provides flexibility and support to users who may face difficulties in timely repayment​​.

Joseph Richard Richard is a distinguished contributor to, where he leverages his extensive background in finance, business, and technology to provide insightful guides and analyses. With over a decade of experience in Kenya's dynamic market, Joseph has become a trusted voice in helping individuals navigate complex topics with ease. His work, recognized for its clarity and reliability, spans critical reviews, educational content, and comprehensive guides on making informed decisions in finance and business. Joseph's commitment to empowering Kenyans through accessible information underscores his reputation as a dependable and authoritative figure in the industry