NCBA Group’s digital banking solutions provider, LOOP, and bolttech have launched LOOP FLEX, a Buy Now, Pay Later (BNPL) facility that provides Kenyan customers with flexible, accessible credit to improve their lifestyle.
The digital financial platform offers customers credit limits of a minimum of KES 15,000 and a maximum of KES 1,000,000, allowing them to purchase goods on credit by making a minimum deposit of 10%, while LOOP pays the full purchase amount directly to the seller. LOOP FLEX’s good credit limits pave the way for its users to easily control the purchase of both basic and aspirational goods.
Speaking during the launch of the digital financial solution, Eric Muriuki, Chief Executive Officer of LOOP, said that LOOP FLEX supports LOOP’s role as a lifestyle enabler, and is designed to give users the ability to enjoy life today while responsibly managing their tomorrow. LOOP FLEX’s eligibility requires customers to be fully registered on LOOP, have a positive credit limit, and no overdue loans. Customers can hold a maximum of five active FLEX loans, with a minimum amount of KES 9,000.
LOOP FLEX repayment and pricing
Loan repayments are scheduled to take place in monthly installments over a period of one year with interest, a key feature in buy now, pay later schemes. The product is offered on risk-based pricing where the interest rates and loan terms are tailored to the borrower’s creditworthiness. A facility fee of 4% of the loan amount, an excise duty, also applies.
Kenya’s BNPL market
Kenya’s Buy Now, Pay Later industry had a value of $1.03 billion (KES 133.4 billion). The sector experienced strong growth during 2021-2024, with a Compound Annual Growth Rate (CAGR) of 23.4%. The sector’s expansion is expected to grow by 13.6% this year to reach $1.18 billion (KES 152.8 billion). In the period of 2025-2030, Kenya’s BNPL market is anticipated to grow at a CAGR of 9.6%.
Also Read: CAK Approves Acquisition of 100% of Minet (Mauritius) Holdings by Bima Holdings
