The Communications Commission of Kenya (CCK), the regulatory authority for the telecommunications sector of the country, recently granted mobile virtual network operator (MVNO) licenses to Finserve Africa Limited, a subsidiary of Kenya’s Equity Bank, and two Kenyan mobile money transfer services, Tangaza Mobile Pay Limited and Zioncell Kenya Limited. The three organizations have received licenses under the “application service provider” category, which allows them to provide services such as customer registration, the issuance of subscriber identification module (SIM) cards, billing and customer care. The operators will host their services on the network of Airtel Kenya, a subsidiary of Indian telecommunications company Bharti Airtel.
There is no financial information available for Finserve Africa Limited, Tangaza Mobile Pay Limited or Zioncell Kenya Limited. As of 2013, Equity Bank reported to the US-based nonprofit Microfinance Information Exchange (MIX), total assets of USD 2.7 billion, a gross loan portfolio of USD 1.8 billion outstanding from 840,333 active borrowers, deposits of USD 1.8 billion from 7.3 million depositors, return on assets (ROA) of 31.1 percent and return on equity (ROE) of 151 percent. As of December 2013, Airtel claimed approximately 287 million subscribers in 20 countries across Africa and Asia. As of 2012, Airtel Kenya serves 4 million subscribers.
By Juan Blanco, Research Associate
About Finserve Africa Limited
Finserve Africa Limited is a mobile money transfer service based in the Kenyan city of Nairobi that started operations in 2005 and is a subsidiary of Equity Bank. No financial information is available on the company.
About Tangaza Mobile Pay Limited
Tangaza Mobile Pay Limited is a money transfer service based in the Kenyan city of Nairobi. No financial information is available on the company.
About Zioncell Kenya Limited
Zioncell Kenya Limited is a mobile money transfer service based in Nairobi, Kenya. No financial information is available on the company.
About Bharti Airtel
Founded in 1995, Bharti Airtel (Airtel) is an Indian telecommunications company headquartered in New Delhi, India. Airtel operates Airtel Money, whereby users can transfer money, pay bills and perform financial transactions directly from their mobile phones. As of August 2012, Airtel’s total assets were at USD 636 billion. As of December 2013, Airtel claimed approximately 287 million subscribers in 20 countries across Africa and Asia.
About Airtel Kenya
Airtel Kenya is a subsidiary of the Indian telecommunications company Airtel. It was launched in 2000 as Kencell, rebranded to Zain in 2008 and finally Airtel in 2010. As of 2012, Airtel Kenya serves 4 million subscribers and offers a variety of services including Airtel Money (money transfer service), prepaid and postpaid plans, mobile phone services and internet access.
Sources and Additional Resources
[1] MVNOs Industry Summit Blog, “Kenya Officially Gives Green Light to Three MVNOs,” April 2014, http://mvnoseriesblog.wordpress.com/2014/04/15/kenya-officially-gives-green-light-to-three-mvnos/
[2] Communications Commission of Kenya, “CCK Licenses Mobile Virtual Network Operators,” April 2014, http://www.cck.go.ke/news/2014/Mobile_Virtual_Network.html
MicroCapital Story, March 3, 2014, “Safaricom, Britam, Changmka Microinsurance to Offer Mobile Health Insurance in Kenya,” https://www.microcapital.org/safaricom-britam-changmka-microinsurance-to-offer-mobile-health-insurance-in-kenya/
MicroCapital Story, January 12, 2014, “Accion Venture Lab Invests in Kenyan Mobile Money System Kopo Kopo, MeraDoctor of India,” https://www.microcapital.org/microcapital-brief-accion-venture-lab-invests-in-kenyan-mobile-money-system-kopo-kopo-meradoctor-of-india/
MicroCapial Story, November 15, 2013, “Kenya Commercial Bank, Safaricom’s M-Pesa Launch Mobile App KCB M-Benki to Increase Financial Inclusion,” https://www.microcapital.org/microcapital-brief-kenya-commercial-bank-safaricoms-m-pesa-launch-mobile-app-kcb-m-benki-to-increase-financial-inclusion/
MicroCapital Universe Profile: Equity Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Equity+Bank
MicroCapital Universe Profile: Bharti Airtel, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bharti+Airtel
MicroCapital Universe Profile: Airtel Kenya, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Airtel+Kenya
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