Ria Money Transfer and Postbank Kenya sign deal to boost remittance flows
Ria Money Transfer has just signed an agreement with Postbank, one of Kenya’s oldest banks. This deal will allow Kenyans working abroad to send and receive money through the Postbank network, using Ria’s transfer technology. Ria Money Transfer is part of the Euronet Worldwide group, which provides cross-border payment services. Postbank, which is owned by the Kenyan Government, chose Ria’s service, so that their customers can send money through any of the bank’s 99 branches, or receive it directly into their accounts.
The agreement was brokered by Ria’s General Manager for Africa, El Hadj Malick Seck and the signing took place in Nairobi on July 31. The event hosted notables including the Governor of the Central Bank of Kenya, Professor Njuguna Ndung’u, Postbank’s acting Managing Director, Anne Karanja, and Postbank Board Chairman, the Hon. Fred Kapondi.
At the signing, Ria’s Malick Seck explained: “East Africa is key to our business, and of course Kenya stands at the forefront of this. All over the world, we have Kenyans working and never forgetting to send money back home to family and loved ones. The growing network of foreigners in Kenya is also actively sending money to relatives across the globe, and Ria makes all this happen in a fast, secure and economical way.”
Kenya has been experiencing a surge in remittances. Central Bank of Kenya data shows that the inflow of diaspora remittances through formal channels amounted to US $116.1 million during June 2014 – an increase of 16.3 per cent from the previous year. The greatest inflow came from North America with US $52.8 million. Transfers from Europe totalled US $32.2 million, while the rest of the world amounted to US $31.1 million.
In the past, a lack of world class infrastructure has meant lower penetration of remittance services in Kenya, with less choice and higher costs. However, The Money Remittance Regulations, which were passed in April 2013, allow for more competition in the Kenyan market.