Short guide explaining how M-Shwari tracks loans using your National ID, how recovery happens, and what borrowers in Kenya need to know.
M-Shwari is one of Kenya’s most widely used digital lending products, but there is still confusion about how loan recovery actually works. Many borrowers believe changing a phone number can help them avoid repayment. That is not the case.
Here is a simple, step-by-step guide explaining how M-Shwari loan recovery works, based on its operating rules and terms.
1. M-Shwari Loans Are Tracked Using Your National ID
M-Shwari loans are managed at National ID level, not by phone number.
When you register for M-Shwari, your loan account is tied to the ID you used during registration. This means:
- Changing your SIM card does not clear an outstanding loan
- Your borrowing history follows you as an individual
- Loan obligations remain active until fully repaid
2. Phone Numbers Are Linked to an ID
Safaricom allows multiple phone numbers to be registered under one National ID.
Because of this:
- A borrower who defaults and later registers a new Safaricom line under the same ID can still be traced
- Loan recovery communication may continue through any linked line
- Opening new lines does not reset or erase loan obligations
3. Recycled Phone Numbers Do Not Transfer Debt
If you receive a recycled phone number, you are not responsible for loans taken by the previous owner.
This is because:
- The unpaid loan remains linked to the original borrower’s ID
- Your credit profile is based only on your own ID
- Recycled numbers do not inherit loan balances or CRB listings
4. CRB Listings Follow the Borrower’s ID
When a loan goes unpaid, M-Shwari reports defaults to Credit Reference Bureaus (CRBs) using the borrower’s National ID.
What this means:
- Missed payments affect your credit score, not your phone number
- Switching SIM cards does not prevent CRB listing
- Clearing the loan improves your credit profile over time
5. The Bank Has a Right of Lien
Under M-Shwari’s Terms & Conditions, the bank reserves the right of lien.
This allows the bank to:
- Recover outstanding loan amounts from any account linked to the same ID
- Offset loan balances using available funds in related accounts
- Enforce recovery even if the loan was taken on a different phone number
6. How to Check Which Lines Are Registered Under Your ID
To protect yourself, regularly confirm which Safaricom numbers are linked to your National ID.
How to check:
- Dial *106#
- Follow the prompts to view all registered lines
If you see a number you do not recognise, visit a Safaricom shop immediately for clarification.
7. What to Do If You Owe an M-Shwari Loan
If you have an outstanding loan:
- Repay as early as possible to avoid penalties and CRB listing
- Do not rely on SIM swapping as a solution
- Contact Safaricom or NCBA for official clarification if unsure of your balance
Key Takeaway
M-Shwari loan recovery is based on your National ID, not your phone number.
Managing your loan responsibly protects your credit profile and access to future financial services.