Safaricom has announced a new partnership with dairy processor New KCC that will see the roll out of a Kshs. 55.7 million cashless solution aimed at increasing business efficiency and addressing the risks involved in cash handling. The new system will among other things allow for order processing, access to real time reports on deliveries as well as creation of invoices and settlement of payments. The solution to be delivered on App will offer the over 200 New KCC sales and distribution agents with ability to generate regular reports thus ensuring accountability in record keeping.
The App integrates with Safaricom’s payment solution Lipa na M-Pesa. According to New KCC Managing Director Nixon Sigey, the solution accounted for Kshs. 11 Million of total daily cash collections during the one month trial period. The dairy processor targets a cash collection of Kshs. 4 billion per year. Safaricom will earn a commission of 0.25% from the distributor with each distributor able to transact upto Kshs. 140,000 daily.
The New KCC Lipa Na M-PESA sales solution will further reduce the possibility of human errors when posting payments in the system, save on time spent in banking halls and risks associated with huge cash handling. Previously, the dairy processor used Cash in Transit (CIT) services over the weekends and holidays when banks were closed as the agents and salesmen had to take cash to KCC offices for clearance which increased chances of revenue leakages. Customers can also purchase New KCC products using the PayBill number #649649.
The partnership is the latest among a number of deals that Safaricom has signed targeting the Agriculture sector, including a partnership with the Ministry of Agriculture for distribution of fertilizer under the eSubsidy project as well as roll out of a cashless payment solution to 66 Kenya Tea Development Agency (KTDA) to factories across the country.