Mobile service operator Telkom Kenya is gearing to launch a mobile loan service to take a slice of the fast-growing and lucrative mobile-lending subsector.
Telkom plans to collaborate with a yet-to-be-named financial institution to enable its customers access instant microcredit facilities through their mobile phones.
Short-term mobile loans have attracted several fintech players in the past few years with leading mobile phone operators taking advantage of their large number of subscribers to roll out different products.
Telkom’s loan product will be accessible through the mobile app T-Kash.
In a statement announcing the plans, Telkom said, “From our interactive sessions with our customers, we have taken note that Kenyans appreciate mobile money solutions better when they keep on finding more reasons to attach value to their mobile wallets, whether they are sending money, paying for goods and services, saving, borrowing or trading.”
The new facility will compete with similar products that include KCB-Mpesa and M-Shwari by NCBA that run on Safaricom network. Safaricom’s credit facility, Fuliza, is one of the most popular in the country, raking in handsome profits for the giant telco.
“We continue to have these exploratory sessions that will inform and enhance the experience we offer our customers; we will be able to update once the new value proposition is ready for the market.” Telkom Kenya expounded.