Kenya’s largest network provider, Safaricom, is working on a new unit trust investment product on its M-Pesa platform that will allow customers to make small payments via M-Pesa that will be used as investments in assets like stocks, fixed bank deposit, and government securities.
The giant telco is set to commercially launch the new mobile savings service that will be called Mali (Wealth) soon in a bid to improve the MPesa mobile money platform from just offering to send and receiving cash services to include insurance and wealth management.
The telco started testing the unit trust investment back in December and is awaiting regulatory approval to introduce the new savings product, which will offer interest rates of 10 to the masses.
“We are in the final stages of piloting a unit trust investment product enabling customers to create and retain wealth,” said Michael Joseph who was recently serving as acting CEO, in an online investor briefing last week. “The new market-based app which will launch shortly will aid in enhancing M-Pesa as a lifestyle platform.”
Mali will offer which will offer interest rates of 10pc on deposits capped at Sh70,000 per saver, this is good news for millions of its subscribers because that is nearly double the current interest rate that banks are paying on savings.
Mali will allow for instant withdrawals, of either partial or all funds, credited to the M-Pesa wallet. In case a customer wishes to withdraw beyond MPesa limits, the payment will roll over days until the full investment pays off.