Skip to content
paybillke
Lending

Halal Pesa 2026: Suspended for New Customers, Tawarruq Explained

Halal Pesa is currently suspended for new customers. Tawarruq mechanics and Shariah-compliant alternatives, verified 30 August 2026.

AO
by Reviewed by Michael Mwangi 8 min read Updated 30 August 2026Verified 30 Aug 2026

Halal Pesa is currently suspended for new customers as of 30 August 2026. Existing customers can only repay. Halal Pesa was a Shariah-compliant facility (Tawarruq model, no interest) from Gulf African Bank offered through the M-PESA menu. The Safaricom Halal Pesa page currently shows the registration and new-facility menus as unavailable.

What Halal Pesa was

Halal Pesa launched as a partnership between Gulf African Bank (a CBK-licensed fully Islamic commercial bank) and Safaricom PLC. It sat inside the M-PESA menu alongside M-Shwari, KCB M-PESA and Fuliza. It was aimed at Muslim customers who wanted a mobile-money credit and savings facility structured to avoid Riba (interest), which is prohibited under Shariah.

Two components were originally offered: a Tawarruq-based short-term facility (comparable in workflow to M-Shwari) and a Shariah-compliant savings pot that shared profit rather than paying interest.

Why Tawarruq matters (facility, not loan)

Tawarruq is a widely-used Shariah-compliant financing structure. Simplified, the mechanics are:

  1. The bank buys a commodity (traditionally a metal traded on a Shariah-compliant exchange).
  2. The bank sells that commodity to you on a deferred payment basis, at an agreed marked-up price (this is your total repayable).
  3. You immediately sell the same commodity for cash to a third party (arranged by the bank).
  4. You now have cash and a deferred obligation to the bank, and the bank has been paid an agreed profit rate rather than interest on a loan.

The difference matters for compliance. Under Shariah, lending money for a return is Riba. Buying and selling goods at a mark-up is trade, which is permitted. The user experience feels like a loan, but the legal and religious classification is different: Halal Pesa was a facility, not a loan.

Because of this structure, pricing is a fixed profit rate embedded in the total repayable, not a percentage interest rate that compounds. The customer sees drawdown and total repayable at the moment of the transaction and confirms.

Current status

The Safaricom Halal Pesa product page currently displays a notice that new customer registration and new facility requests are not available, and the corresponding menu options have been removed. Existing customers with an active facility continue to repay through the menu.

Neither Safaricom nor Gulf African Bank has published a public timeline for reactivating new-customer onboarding. Do not rely on old how-to guides that describe registering for Halal Pesa; the workflow is not currently available.

Shariah-compliant alternatives available now

  • Gulf African Bank branch products. The bank offers full personal and business finance products at its branches using Murabaha (cost-plus sale), Ijarah (leasing) and Musharakah (partnership) structures. These are the same underlying compliance model as Halal Pesa but require a branch visit.
  • Other Islamic banks in Kenya. Dubai Islamic Bank Kenya and First Community Bank offer Shariah-compliant products.
  • SACCOs. Many SACCOs offer member loans at low fixed rates through savings-based lending. Some Muslim borrowers accept SACCO loans on the reasoning that the return is a member service charge rather than commercial interest. This is a decision for the individual and their scholar.
  • Family or community-based lending (Qard Hasan). An interest-free loan repaid at the original amount is fully Shariah-compliant and remains the most straightforward option for small amounts.

What not to do

Do not treat a conventional interest-charging M-PESA loan (M-Shwari, KCB M-PESA, Fuliza) as a Shariah-compliant option because it is small or short-tenure. The interest classification does not change with amount or tenure. If Shariah compliance matters to you, wait for Halal Pesa to reactivate, use an Islamic bank branch product, or use a Qard Hasan.

Sources

  1. Safaricom PLC. Halal Pesa product page (safaricom.co.ke/main-m-pesa/m-pesa-services/credit-and-savings/halal-pesa). Current suspension status verified 30 August 2026.
  2. Gulf African Bank. Halal Pesa FAQs (gulfafricanbank.com).
  3. Safaricom PLC. Press release, Safaricom and Gulf African Bank Launch Shariah Compliant Halal Pesa (product background).
  4. Central Bank of Kenya. Directory of licensed commercial banks, including Islamic banks.

FAQ

Is Halal Pesa still available in 2026?

Halal Pesa is suspended for new customers as of 30 August 2026. The registration and new-facility menu options are not available. Existing customers can continue to repay but cannot draw new facilities. Verify current status on the Safaricom Halal Pesa page before assuming.

What is Tawarruq?

A Shariah-compliant financing structure. The bank buys a commodity, sells it to you on deferred payment at a marked-up price, and you sell the same commodity to a third party for cash. The mark-up is a profit rate, not interest, because you technically transacted in goods. It is a facility, not a loan.

Does Halal Pesa charge interest?

No, not in the conventional sense. The pricing is a profit rate embedded in the buy-sell transaction (Tawarruq). Practically, users see a total repayable amount at drawdown; the difference between drawdown and total repayable is the profit rate.

What Shariah-compliant options exist while Halal Pesa is suspended?

Other Islamic banks in Kenya (Gulf African Bank branch products, Dubai Islamic Bank Kenya, First Community Bank) offer Shariah-compliant facilities. Many SACCOs offer member loans at low fixed rates that many Muslim borrowers accept as functionally acceptable. Check with your local imam or Shariah scholar for a specific product ruling.

Further reading

Curated external sources we cite. Open in a new tab.