KCB, Safaricom sign deal on services

FROM LEFT TO RIGHT: Joshua Oigara, Group Chief Executive Officer (KCB), Cabinet Secretary for Industrialization and Enterprise Development Adan Mohammed and Bob Collymore, CEO of Safaricom speaking on Wednesday at KICC. [Photo: Mbugua Kibera/ Standard]

Safaricom and Kenya Commercial Bank (KCB) have signed a deal that will see the line between banking and telecommunications continue to blur.

The companies yesterday entered into a partnership they said would enable them roll out different products with telecommunications and financial service features in the coming months to target different consumer segments.

The two firms are angling for a bigger slice of the economy, with each pushing for the reduction of cash use in favour of electronic payments.

"By coming together, pooling our resources and building on the strength of the KCB and Safaricom brands, we have demonstrated that together we can do more to grow the business opportunities in our respective markets and deliver better solutions to our customers," said KCB Group CEO Joshua Oigara.

"We bring to the table sound financial counsel and banking services that have been tailored to suit the various market niches and competitively priced credit facilities that can support either large scale developments or entrepreneurs in the SME sector."

The collaboration could give the two companies an edge over competition.

"In the next few weeks we expect to offer our combined customer base the best-in-class of financial and integrated communication solutions," said Safaricom CEO Bob Collymore. "This partnership will strengthen our position as the partner of choice for business, Government and NGOs, and a major player in deepening financial inclusion."

First off under the partnership was the launch of a Biashar@ Smart, a product targeting small and medium enterprises (SMEs), and that has different financial and communication aspects. The product will give businesses access to credit, insurance services, business advisories, online data storage, domain hosting and professional email services.

Present at the signing of the partnership and launch of Biashar@ Smart was Industrialisation Cabinet Secretary Adan Mohamed, who said lack of understanding among large corporations of SME needs contributed to the stagnation of many.

"SMEs contribute about 45 per cent of the GDP and account for about 80 to 90 per cent of the new jobs the economy creates every year. This product is transformational for SMEs," he said.

The new partnership comes as Equity Bank plans to roll out its Mobile Virtual Network, which has been highly anticipated by both the banking and telecoms industries.