Uchumi adds agency banking to its service’s list

You will soon be able to do your banking while you shop as Uchumi Supermarket is set add agency banking to its list of services.

Kenya’s oldest retail chain will become the first major supermarket to offer financial services to its customers in the country as competition to attract and retain clients takes a new turn.

Speaking at an investor briefing in Nairobi on Thursday, Uchumi Supermarket chief executive Jonathan Ciano noted that provision of financial services is becoming an important component of the retail chain’s operations.

“Agency banking has been approved by our board. It is the right move in the right direction and we will soon roll out the service to our customers,” Mr Ciano said.

He said the supermarket is already selling insurance products apart from offering utility payment services.

The company has partnered with electricity distributor, Kenya Power, and water companies to facilitate settlement of bills.

“We have insurance products that we are selling. We are also offering utility payment services as part of the value proposition to our customers,” he said.

The supermarket is leveraging on these services to capture the market share it lost when it went under receivership for failing to pay debts six years ago.

The supermarket says its customer base has hit 22 million at from eight million in 2005/06 financial year.

It is the 22 million clients that the firm banks on to expand its financial services outreach.

Uchumi partnered with Safaricom in 2007 to offer M-Pesa services. It is the biggest M-Pesa agent in the country.

Faida Investment Bank report says Uchumi earns about Sh3 million monthly in commission from M-Pesa services.