Technology
KCB, Safaricom target small businesses in new partnership
Wednesday July 09 2014Kenya Commercial Bank has entered into a strategic partnership with Safaricom to offer a suite of solutions that will see small businesses have better access to technology and financing.
Tagged Biashara Smart, the suite includes unsecured loans and discounted communications packages to preferential business opportunities, capacity building initiatives and loyalty programmes.
Biashara Smart, which is billed to be a one-stop solution for SMEs, will have numerous benefits, officials of the two firms say, including same day settlement of payments received on M-Pesa. Currently it takes two days to complete settlement, tying up much-needed cash.
“This is going to transform everything,” said Adan Mohammed, the Cabinet Secretary for Industrialisation and Enterprise Development, who was the chief guest at the product’s launch Wednesday in Nairobi.
The Biashara Smart scheme, which will target a million small enterprises in its first year, brings together existing products and services like Safaricom's Lipa na M-Pesa, KCB M-Benki and Zidisha Biashara as well as new financial and communications solutions.
Last November, the two publicly-listed firms launched KCB M-Benki in Kenya and five other East African countries. The mobile banking app enables “unbanked” M-Pesa subscribers to open KCB bank accounts and conduct transactions over their mobile phones without ever visiting a bank branch.
KCB has subsidiaries in Burundi, Rwanda, South Sudan, Tanzania and Uganda.