Safaricom Products: Safaricom is set to launch insurance, unit trusts, and savings products. The telco giant is currently seeking regulatory approvals to launch the services in a move aimed at deepening its share in the local financial market.
According to a report that appeared in a local business newspaper, Safaricom has already been testing these products. The first two are named as Bima Insurance and Mali Mobile savings. The third which is a unit trust investment product has not been named yet.
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“The giant telco has sought approvals from regulators — Capital Markets Authority (CMA), Central Bank of Kenya (CBK) and the Insurance Regulatory Authority (IRA) for commercial launch of these products,” the report said.
According to Safaricom chief executive officer Peter Ndegwa , Safaricom is planning to tap into its database of 26.7 million active M-Pesa active customers who transact about Sh. 1.5 trillion a month to grow the new products.
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“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,” Ndegwa was quoted saying.
According to the report, the Mali product will offer interest rates of 10 percent on deposits capped at Sh. 70,000 per saver based on a pilot test which started this month.
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“At 10 percent, the return from Mali is nearly double the current interest rate that banks are paying on savings. Safaricom did not divulge details of the unit trust product, but it is expected to partner with a fund manager already licensed by the CMA, who will also approve the new product,” the report said.