Fintech Software Development Kenya | M-Pesa Integration Case Study

The Client

A registered SACCO (Savings and Credit Cooperative) with over 10,000 members across Kenya, primarily serving teachers and civil servants.

The Challenge

The SACCO was struggling to compete with mobile banking apps and digital lenders. Their legacy systems were holding them back:

Paper-Based Processes

Loan applications took 2-3 weeks with manual paperwork and physical visits

No Mobile Access

Members had to visit branches for balance checks and statements

Limited Payment Options

Members couldn't deposit or withdraw via M-Pesa

Poor Reporting

Financial reports took days to generate, hindering decision-making

Project Details

Industry Financial Services / SACCO
Location Nairobi, Kenya (Nationwide)
Project Duration 6 Months
Team Size 7 Developers
Platforms Web, Android, iOS, USSD

Compliance

CBK Regulations
SASRA Compliant
Data Protection Act 2019
AML/KYC Requirements

Our Solution

What We Built

A complete digital banking ecosystem for the modern Kenyan SACCO

M-Pesa Integration

Complete M-Pesa integration for deposits (C2B), withdrawals (B2C), and loan disbursements. Members transact directly from their M-Pesa to SACCO accounts instantly.

Loan Management System

Digital loan applications with instant credit scoring based on savings history. Automated approval workflows, e-signatures, and instant disbursement to M-Pesa.

Member Self-Service Portal

Web and mobile app where members check balances, download statements, apply for loans, update KYC documents, and manage guarantors.

USSD Banking

Custom USSD shortcode (*XXX#) for members without smartphones. Check balance, deposit, request loans, and get mini-statements on any phone.

KYC & Compliance

Digital KYC with ID verification via IPRS integration. Automated AML checks, transaction monitoring, and SASRA regulatory reporting.

Admin & Reporting Dashboard

Real-time dashboards for management. Financial statements, loan portfolio analysis, member growth metrics, and one-click regulatory reports.

Security

Bank-Grade Security

Financial systems require the highest security standards. We implemented multiple layers of protection to safeguard member funds and data.

256-bit SSL Encryption Two-Factor Authentication Biometric Login PIN & OTP Verification Full Audit Trails Data Masking Encrypted Backups Fraud Detection

Screenshots

Platform Overview

Admin Dashboard - Financial Overview

Mobile App - Member Dashboard

Loan Application Flow

M-Pesa Transaction History

Technology

Tech Stack Used

We chose proven, secure technologies suitable for financial applications with high availability requirements.

React.js

Laravel (PHP)

MySQL

Flutter

M-Pesa Daraja API

Africa's Talking USSD

AWS

Redis

Twilio SMS

PDF Generation

Development Process

Project Timeline

Financial systems require careful planning and testing. We followed a phased approach with extensive UAT before each release.

Month 1: Requirements & Compliance

Mapped SACCO workflows, reviewed SASRA requirements, designed system architecture

Month 2: Core Banking Module

Member management, account types, interest calculations, admin dashboard

Month 3: M-Pesa Integration

C2B deposits, B2C withdrawals, STK push, transaction reconciliation

Month 4: Loan Management

Loan products, credit scoring, approval workflows, guarantor management

Month 5: Mobile & USSD

Member mobile app (Android/iOS), USSD application, push notifications

Month 6: Testing & Launch

Security audit, UAT with members, data migration, staff training, go-live

Impact

Results Achieved

Measurable improvements after 12 months of using the platform

KES 50M+

Monthly transaction volume through M-Pesa integration

85%

Reduction in loan processing time (from 2 weeks to 2 days)

40%

Increase in new member registrations within first year

99.9%

System uptime with zero security incidents

"NeuraCreations didn't just build us software—they understood our SACCO's needs and delivered a system that transformed how we serve our members. Our members now apply for loans from their phones and receive money in minutes. This is the future of SACCOs in Kenya."

Mary Wanjiku

CEO, Client SACCO

Frequently Asked Questions

Common questions about fintech software development in Kenya

Fintech software development in Kenya costs between KES 1,000,000 to KES 5,000,000 depending on complexity. A basic M-Pesa integration starts at KES 300,000, while a full banking app with loan management, member accounts, and mobile apps costs KES 2-5 million. NeuraCreations offers milestone-based payments to reduce upfront costs.

We integrate M-Pesa using Safaricom's Daraja API. This includes STK Push for customer payments, C2B for collections, B2C for disbursements, and B2B for business payments. We handle all the security requirements including SSL certificates, IP whitelisting, and transaction encryption required by Safaricom.

Fintech apps in Kenya must comply with Central Bank of Kenya (CBK) regulations, Data Protection Act 2019, and Anti-Money Laundering (AML) requirements. For SACCOs, SASRA compliance is required. We build systems with KYC verification, transaction limits, audit trails, and reporting features to meet these requirements.

Yes, we develop USSD applications for Kenyan banks and SACCOs. USSD works on all phones without internet, reaching customers in rural areas. We integrate with Africa's Talking USSD gateway and build custom shortcodes for balance checks, transfers, loan applications, and mini statements.

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