Nairobi — In a bid to reach the mass market financial services firm, Old Mutual, has partnered with the Postal Corporation of Kenya to use its money transfer service.

The deal signed between the two firms will allow Old Mutual investors to pay their contributions through the more than 300 Postapay outlets countrywide.

During the formal launch of the partnership in Nairobi, Thursday Old Mutual deputy group chief executive officer Tavazira Madzinga said the pact will ease access to unit trusts for potential investors.

The move comes after the funds management firm recently slashed the initial amount to be invested for entrants.

Reliable products

"Our strategy is to reach the mass market and provide more Kenyans with reliable investment products.

This deal will be crucial in providing Old Mutual with direct access to the clients we are targeting through its wide branch network," Mr Madzinga said.

Initially, Old Mutual unit trusts had a minimum entry amount of Sh500,000 but this dropped to Sh200,000 in September last year and in July, the monthly contribution was reduced to Sh7,500 in the new investment package - Toboa Investment Plan.

This is seen as an attempt to entice the mass market into the growing unit trusts realm that has become more competitive with the launching of new providers.

Mr Madzinga said his company is in the process of introducing savings and life products targeting a majority of Kenyans and make them available via Posta.

Postmaster general Fred Odhiambo said the financial services sector of their business is the most profitable entity adding that the deal will be an income-generating one.

Lower charges

"Last year financial services contributed 19 per cent of Sh3.2 billion revenue generated," Mr Odhiambo said.

And with the entry of cheaper mobile phone money transfer services such as M-pesa and Sokotele into the business, the sector has seen transaction charges reduce.