News

cbkThe number of transactions carried out by bank agents in the three months to June nearly doubled compared to the first quarter of the year.
Central Bank of Kenya (CBK) said the agents conducted 25.9 million transactions worth Sh112.7 billion in the second quarter of the year compared to 13.4 million worth Sh74.7 billion in the first three months of the year.
“As at June 30,2015 there were 17 commercial banks that had contracted 36,080 agents which had facilitated 175.4 million transactions valued at Sh817.5 billion”, said CBK.


Banks have contracted businesses such as supermarkets, pharmacies, couriers, hardware shops and post offices as third party agents to provide cash-in cash-out transactions and other services.
The model allows banks to reach more customers without opening new branches which are expensive to set up, or deploy staff. It is estimated that it costs Sh30 million to set up a new branch which usually takes a year to break even.
The agents operate with a “float” system, just as in mobile money transfer, meaning they also need to have a point to deposit excess cash which should not be far from their area of operation.
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