MICROCAPITAL BRIEF: Kenyan Mobile Money Service Providers Finserve Africa, Zioncell, Tangaza Acquire Mobile Virtual Network Operator (MVNO) Licenses, will Access Airtel's Wireless Network

The Communications Authority of Kenya, the regulatory body for the country’s telecommunications sector, reportedly has granted mobile virtual network operator (MVNO) licenses to three mobile money transfer service providers based in Kenya: Finserve Africa Limited, Zioncell Kenya Limited, and Tangaza Mobile Pay Limited.

The three firms plan to provide services via the network of the Kenyan subsidiary of Indian telecommunications firm Bharti Airtel, which has 287 million customers in 20 countries.

Equity Bank, a deposit-taking microfinance institution based in Kenya that also serves South Sudan and Uganda, is the parent company of Finserve Africa.

As of 2013, Equity Bank reported to the US-based 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 of 31.1 percent and return on equity of 151 percent. As of 2012, Airtel Kenya serves 4 million subscribers and offers a variety of services including Airtel Money (a money transfer service), prepaid and postpaid mobile phone services, and internet access. Tangaza was founded in 2005. Customer and financial data on Zioncell and Tangaza are not available.

By Alíz Crowley, Research Associate

About Equity Bank

Equity Bank is a deposit-taking microfinance institution (MFI) in Kenya. Founded in 1984, Equity Bank is a microfinance bank based in Nairobi, Kenya, that provides loans, savings and fund transfer services. In 2008, the Equity Bank Group expanded into South Sudan and Uganda. As of 2013, Equity Bank reported to the US-based 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 of 31.1 percent and return on equity of 151 percent.

About Bharti Airtel

Founded in 1995, Bharti Airtel (Airtel) is an Indian telecommunications company headquartered in New Delhi. Airtel operates Airtel Money, whereby users can transfer money, pay bills and perform financial transactions from their mobile phones. 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 Bharti 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] Communications Commission of Kenya, What We Do

[2] Humanipo, Kenya’s Equity Bank unveils MVNO strategy, launch set for July

MicroCapital, May 20, 2014, Airtel, Ghana Post to Expand Mobile Money Service “Airtel Money” to 350 Post Offices

MicroCapital, April 17, 2014, Airtel, MTN Group Partner to Provide Mobile Money Transfers Between Burkina Faso, Ivory Coast

MicroCapital, June 4, 2013, Equity Bank, Google Announce BebaPay Card for Paying Bus Fares in Kenya

MicroCapital, March 26, 2012, CARE, Orange, Equity Bank Partnering to Bring Mobile Banking Services to Savings Groups in Kenya

MicroCapital, September 10, 2011, responsAbility Invests $13.5m in Microfinance Institutions (MFIs) VisionFund Cambodia, Equity Bank of Kenya

MicroCapital Universe Profile: Equity Bank

MicroCapital Universe Profile: Bharti Airtel

MicroCapital Universe Profile: Airtel Kenya

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