Kenya’s leading telecommunications company Safaricom has said it’s currently testing a new mobile savings service in a bid to broaden its successful M-Pesa mobile money platform.
According to policymakers, Kenya suffers from low national savings rate, and Safaricom intends to target a largely untapped market with the new service dubbed “Mali”
The service will be capped at Ksh70,000 per saver and will offer an interest rate of 10% per year, which is significantly higher than what commercial banks in Kenya offer.
Reflecting on the service, investment analyst Lisa Kimathi said that will benefit a sizable percentage of average-income Kenyans.
“If it comes on board, it will be a game-changer to the ordinary Kenyan. It should do well for their returns,” she said.
This comes just days after the company announced a partnership with Kenya Postal Corporation (KPC) where its subscribers will be able to use their mobile numbers as postal addresses, a service called M-Post. The service costs Ksh300 per annum.
Safaricom has continuously reaped good returns through M-Pesa, Fuliza, and M-Shwari, and Mali could stretch the firm’s dominance in Kenya even further.