Airtel money has launched a new service for subscribers [Photo/Teleanalysis.com]

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Airtel Money has announced the launch of their new mobile money-based savings and loan service that will benefit the Kenyan market.

Airtel's new service will now place Airtel Money and its financial services provider Maisha Microfinance Bank at par with Safaricom M-Shwari and KCB accounts.

The new service, “M-Fanisi” is currently available to all Airtel Money subscribers and the customers will be able to take loans valid for 30 days.

“We are opening doors to those Kenyans who are unbanked to enable them to start their own businesses and/or expand them.Today we are witnessing a major milestone where Maisha is the first microfinance bank in Kenya to successfully roll out a mobile based lending and savings product,"Maisha CEO Kamal Shah said in a statement.

This will not be the first time Airtel has rolled out a loaning service; in 2012 they launched one of many ventures with Faulu Kenya.

The new move is expected to spark stiff competition between Airtel Money and Safaricom’s MPESA.