NAIROBI: Banking agents have now crossed the Sh100 billion mark in transactions in the three months to June, increasing their clout over the industry.
Fresh data from Central bank of Kenya (CBK) shows that the value of banking transactions undertaken through agents jumped by 50 per cent in the three months to June from Sh74.7 billion to Sh112.7 billion over the same period.
The number of banking transactions undertaken through agents almost doubled, rising from 13.4 million in the quarter ending March 2015 to 25.9 million transactions in the quarter ending June 2015 making the model come of age.
“Since the roll out of the agency banking model in May 2010, commercial banks have continued to contract varied retail entities to offer basic banking services on their behalf,” the report published yesterday noted.
The contracted entities include security companies, courier services, pharmacies, supermarkets and post offices who act as third party agents to provide cash- in -cash-out transactions and other services in compliance with the laid down guidelines.
As at the end of June 2015, there were 17 commercial banks on the new model of banking. These banks had contracted 36,080 agents which in turn facilitated 175.4 million cumulative transactions valued at Sh930.1 billion, the report says.
In the quarter ending March 2015, 16 commercial banks had 34,381 cumulative agents since the roll-out. These agents had facilitated 149.4 million transactions valued at Sh817.5 billion since inception.
This means that on average, the agents have been transacting about Sh160 billion annually. This year is set to break this record after the agents did in six months what they have been doing in a year.
The report captures the quarter ending June 30, 2015 and it compares one quarter with the previous quarter.
