Safaricom and KCB target small firms with new product

Safaricom and Kenya Commercial Bank have entered into a long-term partnership that will address the financial and telecommunication needs of the country’s growing small and medium enterprises.

The deal launched Wednesday, through a product called Biashara@Smart, will help SMEs advertise, manage communication resources and provide devices for the Internet and insurance.

SMEs will also get financial advice, low interest rate loans, payroll services and managed websites at cheaper rates.

Safaricom chief executive Bob Collymore said Biashara@Smart will rely on the M-Benki platform for savings and a cloud portal operated by his firm.

MANAGING A WEBSITE

“Customers should dial *484# to access the services on their phones,” said Mr Collymore. “They will have options of accessing two bundled products that cover financial, communication, insurance and affordable loans all through 30 days of saving with an M-Benki account.”

The third product provided under the same portal comes in managing a website.

He said proceeds will be directed to a joint revenue account owned by both Safaricom and KCB, with the bulk of communication revenue directed to the former while financial revenue will go to the latter. KCB chief executive Joshua Oigara said the product targets a million SMEs in a year.

ABILITY TO REPAY

It provides loans of between Sh30,000 and Sh1 million depending on an SME’s ability to repay.

“Many SMEs do not know where to get loans for a business, how to come up with websites, where to get insurance or financial advice, we provide all these under one roof — the mobile phone,” said Mr Oigara.

Industrialisation Cabinet Secretary Adan Mohamed said the partnership will increase SME contribution to GDP, which is currently at 45 per cent.

Through the product, local SMEs will get loans that charge rates ranging from 12 per cent to 18 per cent while USD-based SMEs will get loans with interest rates from 7 per cent to 8 per cent.