Airtel eyes remittances to revamp airtime sales

Airtel Kenya is tapping on remittance from Kenyans living abroad to boost its airtime sales through a new partnership.

The telco has partnered with cross-border airtime provider Prepay Nation to create a platform where Kenyans in the diaspora can buy airtime for friends and relatives in the countries it operates in.

Over three million Kenyans in the diaspora remit Sh11 billion monthly according to Central Bank estimates. Airtel and Prepay Nation anticipate high demand for the service as inflows to Kenya also show a steady increase.

“Airtel Kenya is an ideal partner for us,” said Hervé Perrin, vice-president of business development at Prepay Nation, adding, “Kenyans living abroad are among the most active remitters in the world, and as such are well-served by the access they will now have — access to a cash-based, no-fee service — for sending Airtime back home.”

The World Bank data released in April shows that remittance growth in Kenya hit 10.7 per cent last year, way above the global average increase of six per cent. The World Bank expects Kenya to lead in inflows in sub-Saharan Africa, picking up to $34 billion in 2016 and $36 billion in 2017.

Airtel is tapping into the remittance stream to grow airtime sales at a time when voice revenue has dwindled.