The Central Bank of Kenya (CBK) has approved Telkom Kenya as a payment service provider (PSP), becoming the third firm to be allowed to conduct such a business after Safaricom #ticker:SCOM and Airtel.
Early last week, Telkom Kenya reopened its mobile cash unit T-Kash, eyeing a slice of the country’s lucrative mobile money market.
In a statement on Friday, the CBK said the entry of Telkom Kenya into the mobile financial services space will provide alternative choices to Kenyans as well as enhance competition and innovation in provision of digital financial services.
“The authorisation is issued pursuant to the provisions of the National Payment System (NPS) Act, (No.39 of 2011) and the National Payment System (NPS) Regulations, 2014 following the fulfilment of the stipulated authorisation requirements,” the regulator said.
Telkom Kenya which was incorporated on April 3, 1997, recently rebranded from Orange Kenya to Telkom Kenya after Helios Investment Partners, a UK private equity firm, acquired 60 per cent stake from Orange Group.
On Wednesday, the telco entered into partnership with a payment firm Interswitch East Africa to develop and deploy app solutions, payment gateway and T-Kash codes to hasten the process at which Telkom Kenya customers access services.
This will help the telco’s customers’ access with ease services from their different financial providers.
Interswitch East Africa serves over 22 banks and three telcos in Kenya, managing a portfolio of over 1 million cards, an agency network and a suite of bank ATMs.
“Customers are now embracing technology more and more in all aspects of their lives and the mobile phone plays a key role in this revolution. We as Interswitch, are proud to be partner with the different stakeholders in this market as they navigate the financial technology (Fintech) age,” said Interswitch East Africa chief executive Paul Ndichu in a statement.
Mr Ndichu said in Kenya they are working closely with partners in the technology and financial services sectors to enable development and roll-out of digital solutions to meet the growing demand.