MICROCAPITAL BRIEF: Kenya Commercial Bank, Safaricom’s M-Pesa Launch Mobile App KCB M-Benki to Increase Financial Inclusion

Kenya Commercial Bank (KCB), a publicly traded financial services company in Kenya, has partnered with Safaricom, a Kenyan mobile service provider that operates the mobile money service M-Pesa, to launch a mobile banking application called KCB M-Benki in Kenya and five other East African countries serviced by KCB [1]. The application aims to increase financial inclusion by enabling “unbanked” M-Pesa subscribers to open KCB bank accounts and conduct banking transactions such as deposits, withdrawals, and fund transfers over mobile phones without visiting a bank branch. Subscribers can open a KCB M-Benki by sending a request with their identification number through their M-Pesa account.

In addition to Kenya, KCB operates subsidiaries in Burundi, Rwanda, South Sudan, Tanzania and Uganda. As of December 2012, KCB Group reported total assets equivalent to USD 4.3 billion. As of September 2012, M-Pesa serves approximately 17.2 million clients through 45,500 agent outlets in Kenya. As of 2013, Safaricom reported 17 million subscribers.

By Nisha Koul, Research Associate

About Kenya Commercial Bank (KCB): The Kenya Commercial Bank (KCB) Group is a publicly traded financial services company that is based in Nairobi, Kenya. KCB Group operates subsidiaries in Kenya, Burundi, Rwanda, South Sudan, Tanzania and Uganda. As of December 2012, KCB Group reported total assets equivalent to USD 4.3 billion.

About M-Pesa: M-Pesa is a mobile money service that was launched in Kenya in 2007 and has since been replicated elsewhere in Africa and Asia. The “M” stands for “mobile,” and “pesa” means “cash” in Swahili. Launched in Kenya by Safaricom Limited, a Kenya-based cell phone service provider, M-Pesa was developed by Vodafone Group Private Limited Corporation, a British multinational mobile network operator. As of September 2012, M-Pesa serves approximately 17.2 million clients through 45,500 agent outlets in Kenya. As of 2013, Safaricom reported 17 million subscribers. South-Africa based Vodacom, a child company of Vodafone, operates the M-Pesa service in India and Mozambique.

Sources and Additional Resources:

[1] KCB Press Release, “KCB Launches M-Benki,” http://ke.kcbbankgroup.com/about/media/news/detail/kcb-launches-m-benki/

Ventures Africa, “KCB Launches M-Benki for the Unbanked Population,” http://www.ventures-africa.com/2013/10/kcb-launches-m-benki-unbanked-population/

MicroCapital Story, June 12, 2013, “ICICI Bank, Vodafone Bring M-Pesa Mobile Money Service to India,” https://www.microcapital.org/microcapital-brief-icici-bank-vodafone-bring-m-pesa-mobile-money-service-to-india/

MicroCapital Story, January 31, 2013, “Number of Mobile Money Subscribers in Kenya Down 1%, Total Transaction Value Up 7% During Quarter Ending September 2012,” https://www.microcapital.org/microcapital-brief-number-of-mobile-money-subscribers-in-kenya-down-1-total-transaction-value-up-7-during-quarter-ending-september-2012/

MicroCapital Story, January 27, 2013, “Rejecting Kenya’s M-Pesa Model, Central Bank of Nigeria Bars Telecommunications Companies from Becoming Licensed Mobile Money Operators,” https://www.microcapital.org/microcapital-brief-rejecting-kenyas-m-pesa-model-central-bank-of-nigeria-bars-telecommunications-companies-from-becoming-licensed-mobile-money-operators/

MicroCapital Story, March 19, 2013, “Value of Mobile Money Transactions in Kenya Grows 50% to $16b in 2012 Fiscal Year,” https://www.microcapital.org/microcapital-brief-value-of-mobile-money-transactions-in-kenya-grows-50-to-16b-in-2012-fiscal-year/

MicroCapital Universe Profile, Kenya Commercial Bank (KCB), http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Kenya+Commercial+Bank+%28KCB%29

MicroCapital Universe Profile, M-Pesa, http://microcapital.org/microfinanceuniverse/tiki-index.php?page=M-Pesa

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