Safaricom is not yet done with Kenya, despite calls by parliament to de-monopolise the owner of the M-Pesa mobile money brand. The latest development is that applications are pending before the Capital Markets Authority (CMA), Central Bank of Kenya (CBK) and the Insurance Regulatory Authority (IRA) and if successful, M-Pesa will have added unto it, insurance, unit trust and saving products.
“We are exploring the area of wealth management. We have developed a couple of products and we are seeking regulatory approval. Until the approval is given, we may not want to announce the specifics of the products,” said Safaricom CEO Peter Ndegwa.
Safaricom Insurance
Here Is What You Need To Know
- Safaricom has been testing the three products dubbed Bima (Insurance), Mali (mobile savings) and a unit trust investment product, and has now initiated moves to secure regulatory approval in that regard.
- This is the latest plan to grow the mobile money platform beyond sending and receiving cash, tapping loans as well as paying for goods to include insurance and wealth management.
- CEO Peter Ndegwa says the telco wants to tap into M-Pesa’s 26.7 million active customers that transact about Sh1.5 trillion a month to grow the savings, unit trust and insurance products.
- Mali (Kiswahili for wealth), will offer interest rates of 10 percent on deposits capped at Sh70,000 per saver based on a pilot test. It started testing the savings product in December.
- Safaricom growth strategy hinges on widening M-Pesa offerings and bolster its data business through switching about four million 2G and 3G phones to 4G to offset a fall in revenue from mobile calls amid a saturated market.
- Mr Ndegwa says the telco wants to use the new products as part of the strategy to broaden M-Pesa into a financial service provider that will rival banks, insurance firms and fund managers.
- In November this year, Senators in Kenya expressed worries over the growing strength of the country’s leading telecoms firm, Safaricom, warning that it is too big for the competition and giving the impression that there is no level playing ground in the country’s telecoms industry.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer