This research report was prepared by the Research Department of Old Mutual Securities Limited. Old Mutual Securities Limited is a securities trading company licensed by the Capital Markets Authority (Kenya) for the purpose of facilitating trade on the Nairobi Securities Exchange.

Here are our views on the news making headlines today for Kenya:
M-Pesa users can now send money through their mobile phones to recipients in seven African countries following the signing of an agreement with South African telecommunications company MTN. The inter-connect agreement between the region’s two biggest mobile money operators now enables convenient sending of cash between M-Pesa customers in Kenya, Tanzania, DRC and Mozambique, and MTN Mobile Money customers in Uganda, Rwanda and Zambia.

Our View: The recent suspension of terror-linked money transfer service companies in Kenya portends a huge potential for the company as this would enable it rake huge monetary benefits yet adding to the economic growth of these seven countries. Last year, Safaricom was granted a license by the Central Bank of Kenya that opened the door for M-Pesa to offer outward cash transfer services. The firm’s cross-border operations had been restricted to inward remittances. The one-sided international cash transfer services only allowed it to move money into Kenya through partners such as Western Union and MoneyGram.

Read more in the document below:

Related links: