Business News

Kenyan Safaricom extends money transfers to Britain
Tue Oct 13, 2009 11:18am EDT
By Helen Nyambura-Mwaura

NAIROBI, Oct 13 (Reuters) – Kenyan mobile operator Safaricom (SCOM.NR) extended its money transfer service to Britain on Tuesday and may roll it out to other countries.

The service – known as M-Pesa – transfers over 600 million shillings daily and has handled 230 billion shillings ($3.05 billion) since it was set up in March 2007.

The system has close to 7.5 million registered users and has grown into the primary method of transfering small cash amounts across Kenya, reaching the most remote villages.

Safaricom hopes to take it to Uganda, Tanzania, Rwanda, the United Arab Emirates and eventually the United States, countries with big Kenyan populations, said Safaricom CEO Michael Joseph.

With the British launch, users can send a maximum of 250 sterling pounds ($395) per transaction for a cost of 6.90 pounds and have a 1,000 pounds limit per month.

Joseph said Safaricom, Kenya’s leading telecoms player which is partially owned by Britain’s Vodafone (VOD.L), had contracted Western Union, Provident Capital and KenTvas as its agents.

Banks have been unable or unwilling to extend their services to rural Kenya where the majority of the population is poor and only needs basic financial services. (Editing by David Cowell)