Ria and Postbank Kenya sign deal to boost remittance flows

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L-R: Ria’s Malick Seck with Postbank’s acting MD Anne Karanja, Central Bank of Kenya’s Prof. Njuguna Ndung’u and Postbank Board Chairman, the Hon. Fred Kapondi. © Ria

Ria is celebrating another milestone. We’re delighted to announce we’ve just signed an agreement with Postbank, one of Kenya’s oldest banks. This deal will allow Kenyans working in the global diaspora to send and receive money through the Postbank network, using Ria’s innovative transfer technology.

Postbank, which is owned by the Kenyan Government, chose Ria’s fast, secure and economical service. And now their customers can send money through any of the bank’s 99 branches, or receive it directly to their accounts.

The agreement was brokered by Ria’s General Manager for Africa, El Hadj Malick Seck – or Malick as he’s known at Ria – and the signing took place in Nairobi on July 31.

The festive 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. An orchestra played vibrant African music throughout the night in celebration of the signing.

Prof. Njuguna Ndung’u praised the new partnership, saying it would improve diversity and pricing, as some players in the money transfer market were currently enjoying too much dominance. Postbank’s Acting Manager Director Anne Karanja echoed this, commenting: “When there are many choices, the customer is the winner in terms of pricing and quality of services.”

We couldn’t agree more.

 

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Central Bank of Kenya Governor, Professor Njuguna Ndung’u, praised the new partnership, saying it would improve diversity and pricing in the market. © Ria

 

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, across the diaspora, 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. But that’s all changing. The Money Remittance Regulations, which were passed in April 2013, allow for more competition in the Kenyan market – something we embrace.

Ria is against monopolies and for free markets. And this brand new deal supports our philosophy to provide more competition and choice where the customer benefits.

We look forward to a fulfilling partnership with Postbank, and will continue to develop more services that support the people in this important continent.

 

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An orchestra played vibrant African music in celebration of the signing. © Ria