In Kenya, Safaricom has won a multi-million shilling deal to provide high-speed Internet for a new cheque-clearing system. It is one of the largest deals the firm has signed in the data market, which is presently dominated by AccessKenya.
According to the company, the new five-year deal with Kenya Bankers Association (KBA) that begins on June 1 will help in the “transmission and clearing of cheques electronically.”
It added that the move is “expected to boost its profile in the Internet market as it seeks to diversify from the voice business that is gripped by a price war.”
According to one analyst, speaking on background only, the agreement will give Safaricom connections to 43 banks and a clearing house managed by the Central Bank of Kenya. The deal is expected to deliver earnings worth millions of Kenyan shillings.
Sylvia Mulinge, the Enterprise general manager of Safaricom, said the firm had “invested heavily in infrastructure, including fiber optics capacity from TEAMS, Seacom and KPLC that it will use to pursue more deals in the corporate data market.”
Analysts agree and Safaricom reported the deal is expected to be part of the company’s long term plans for a steady flow of business.
“The contract with Safaricom runs for five years, but we can renew it upon expiry,” said Habil Olaka, KBA’s CEO, in comments published by Business Daily.
By Staff
