Old Mutual to use M-PESA

International fund manager Old Mutual Kenya has signed an agreement with mobile service provider Safaricom to use its M-PESA mobile money-transfer service to receive monthly contributions.

The arrangement will enable investors to easily and conveniently top-up their unit-trust-investment monthly contributions via their mobile phones.

"M-PESA will allow Old Mutual to penetrate the mass market and offer Kenyans reliable investment products," said Bertie van der Walt, Old Mutual Kenya CEO.

The partnership is mainly geared toward increased savings under Old Mutual's Toboa investment plan, which allows investors to save 7,500 Kenyan shillings (US$106) per month.

"We are targeting Kenyans who do not hold bank accounts," noted Michael Joseph, Safaricom CEO.

The partnership shows a calculated strategy to promote the investment plan and penetrate the mass market after Old Mutual's recent signing of a contract with the Postal Corporation of Kenya to use its money-transfer service, Postapay.