Telkom Kenya intends to compete with the country’s expanding number of digital lending firms by establishing a mobile loans solution that does not demand collateral.
The loan product, which will be available through its mobile cash unit T-Kash, has been evaluated and determined to be viable as reported by Business Daily. The initiative, which will be launched in collaboration with a financial institution, would provide Telkom Kenya clients with quick microcredit via their mobile phones.
“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 telco said in a statement.
“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 relaunched its T-Kash mobile money service in 2018, after closing it the previous year.
The new Telkom loans app will compete with KCB Group’s KCB M-Pesa and NCBA Group’s M-Shwari, both of which are operated in collaboration with Telkom Kenya’s rival, Safaricom.
Telkom, which is in the process of restructuring, is counting on new income streams generated by new products to propel it to profitability and turn around its loss-making business.
The company’s operations was restructured after plans to merge with competitor Airtel Kenya Limited fell through.