Old Mutual teams up with Postapay

Financial services provider Old Mutual has ventured into the mass market with a product that utilizes the Postal Corporation of Kenya's Postapay electronic money transfer system.

Old Mutual's Toboa Investment Plan targets lower-level savers, and the company is banking on its partnership with the Postal Corporation to reach customers in rural areas, Old Mutual said in a statement.

The Toboa Investment Plan requires customers to deposit a minimum monthly contribution of 7,500 Kenyan shillings, a significant reduction from the 200,000 shilling lump sum that was previously required.

Customers will be able to make their deposits at any Postal Corporation office nationwide.

The agreement will add to the Postal Corporation's revenue stream, though its Postapay operations are currently under forensic audit as ordered by the government.