Customers of Small and Micro Enterprise Programme (SMEP), can now use Safaricom's MPESA service to make their monthly loan repayments and saving contributions.

The development follows the launch of the service Monday offering the organization's over 51,000 customers a reliable and convenient means of repayment.

Speaking during the launch, Safaricom Chief Executive Officer Michael Joseph said the company would continue entering into strategic partnerships to create innovative products and services that meet the requirements of both the customers and business partners.

"We are committed to offering business solutions that make it easier for our partners to serve their customers effectively. As part of this strategy, we are in constant touch with public utility companies, financial institutions, supermarkets and fuel stations among others," he said.

Joseph said the deal was reached after realizing that many of their subscribers were also members of the micro-finance organizations thus the need for creating an avenue enabling over 6 million M-PESA customers to transact more conveniently.

To use the service, SMEP customers registered for M-PESA will select "Pay Bill" on the M-PESA menu; then enter the SMEP business number, their allocated account number (as provided at the point of recruitment), the amount of money they wish to transfer to SMEP and then enter their M-PESA Personal identification Number (PIN).

The customers using the service can pay between sh100 and sh10, 000 per transaction. A transaction fee of sh20 applies, with deposits to M-PESA being free where upon remittance of funds; the payment data generated will be directly uploaded to the SMEP tracking system.

Joseph said currently over 60 companies had signed up for the Pay Bill service and accept payments via M-PESA from customers adding that the company was committed to entering into relationships with other companies to enhance the  interaction with the service.

SMEP Chief Executive Officer Phylis Mbungu, said their customers from all parts of the country could now deposit their savings and pay their loans from the comfort of their businesses and homes anytime, anywhere through the M-PESA service.

The micro fiancé institution boasts of a customer base of 51,000 and offers a varied range of products including business, agriculture, household, individual loans, project financing, housing/building loans, collateral savings, health insurance policy among others.

Since the launch of the money transfer service by the giant telecom company in 2007.

The services have enable customers to transact business including electricity bills payments and money transfers.