Kenya’s largest telecommunications company, Safaricom, has received the greenlight from the Insurance Regulatory Authority which paves the way for its entry into the insurance sector after a four-year wait.
In Safaricom’s H1 2024 earnings call, CEO Peter Ndegwa announced plans to launch a new insurance product named Bima for M-PESA users. The company has been testing insurance services in anticipation of regulatory approval.
This aligns with the company’s goal to transform M-PESA into a full-service financial platform addressing many customer needs. M-PESA currently serves over 30 million active users, with monthly transactions exceeding Sh. 1.5 trillion.
“Innovation remains critical. We have revamped our wealth proposition and have now received an insurance intermediary license from the Insurance Regulatory Authority,” said Peter Ndegwa.
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“This will help us accelerate our rollout of insurance solutions; we expect to rollout propositions in both wealth and savings but also insurance in the second half of this financial year.”
Safaricom’s revenue from services grew by 13.1% to reach Sh. 179.9 billion. Earnings Before Interest and Taxes rose by 1.8% to Sh. 42.2 billion for the six months ending September 30, 2024.
