M-Kesho deposits hit Sh900m

Equity Bank's M-Kesho mobile banking service has so far attracted 658,057 customers with deposits worth Sh900m.

The unique service which was launched in May in partnership with Safaricom enables individuals to withdraw money from their bank accounts via their mobile phone handsets.

The service also allows Equity customers to deposit money into their accounts through Safaricom’s M-Pesa agents.

With a deposit of as little as Sh100, individuals are able to credit and withdraw money from the account using the M-Pesa money transfer service.

Central Bank of Kenya governor Prof. Njuguna Ndungu says the progress will soon see a significant reduction in the cost of doing business for banks and deepen access to financial services for the unbanked.

“Although the brick and mortar has served our country very well in the past, the clamour for cost reduction, ease in doing business and wide geographical spread has led to introduction of cheaper alternative delivery channels such as Agent banking and Mobile banking” he said. “I therefore urge banks to consider utilizing alternative these channels in order to reap the benefits of increased consumer base and reduced banking services”