Musoni Microfinance Kenya : IT-enabled business model
Abstract
Musoni Kenya is a Kenyan microfinance institution (MFI) whose idea was conceived in The
Netherlands. The Musoni business model is ICT-enabled, 100 percent mobile based, virtually paperless, and
runs on an ICT platform housed in Musoni BV in Amsterdam, The Netherlands. It is built on tested mobile
technology that allows huge savings on transaction and operating costs. Using mobile payments, clients
receive and perform bank operations anytime anywhere. This saves transport costs, transaction time and
increases safety as no cash has to be carried around sometimes in dangerous areas. The mobile payments
enable clients to make large improvements in loan officer efficiency and makes tracing payments seamless,
saving on administration costs. The Musoni branches are also inexpensive as they are only used as the point
of contact with customers hence reducing the cost of setting up operations even in remote areas. These
efficiencies are passed on to clients in the form of lower interest rates and to stakeholders in the form of
good returns on investments. The company aims to use this knowledge, experience and global ICT platform
to expand to other countries with a suitable mobile payments environment.