Kendy Money Transfer, recently issued with a license by the Central Bank of Kenya (CBK), will be offering several solutions to send money and make payments within Africa and abroad.
In Africa, the company will now cross transfer remittances between Kenya, Uganda, Tanzania, Ethiopia, Mali, Guinea Bissau, Benin, Togo, Senegal, Ivory Coast, Niger, Mauritania, Ghana and Gambia.
General Manager Caroline Rukaria says Kendy is looking at leveraging on innovative money transfer options to reduce costs and increase penetration within Africa.
“We have already established a presence in several locations in Kenya, where our customers can access our various services. This is an ongoing exercise,” Rukaria said.
The firm plans to widen its network and service delivery through partnering with licensed financial institutions such as banks, forex bureaus and mobile cash agents.
Some of the services provided by Kendy Money Transfer to recipients include cash transfers, bank deposits, mobile wallet and bill payments.
Rukaria noted that the potential for Africa remittance is huge but the market in Africa remains relatively underdeveloped.
“Africa has a huge share of cross-border remittances flowing through informal channels and significantly higher remittance costs, than most parts of the world,” she said.
Kenya is a key remittance market as it receives, on average, 60 percent of remittances to East Africa and an average of 10 percent of all remittances to the Sub-Saharan region.
According to the Central Bank of Kenya, remittances to Kenya increased by 8.6 percent to Sh10.6 billion in May 2014 compared to Sh9.8 billion in May 2013.
Europe and North America account for approximately 75 percent of remittance inflows while the rest of the world , including Africa, account for the balance.