Kenyan Dairy Processor Partners with Safaricom on Cashless Solution

Leading dairy processor, New KCC has partnered with Safaricom to roll out a Kshs. 55.7 million cashless solution, to enhance business efficiency and address risks associated with cash handling.

Through a mobile application, over 200 sales and distribution agents for New KCC will be able to place and process orders, access real time reports on deliveries, create invoices and make payments.

The specialised app will also generate regular reports to ensure accountability and for record keeping purposes.

“The adoption of this App integrates Lipa Na M-PESA with our other distribution functions, and will be very instrumental in boosting our revenues and improving our efficiencies” said Nixon Sigey, Managing Director, New KCC.

Sigey said, “During the one month trial period, the Lipa Na M-PESA service accounted for 43% of total daily cash collections and we expect the number to grow to our target cash collection of Kshs. 4 billion per year. This will effectively translate to accountability and more effective management of our finances.”

The New KCC Lipa Na M-PESA mobile sales solution will also 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, New KCC 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; a tedious and time consuming process.

With the new mobile phone solution, processes can be completed in seconds. Security along the supply chain has also been enhanced as agents no longer have to transfer large amounts of cash between points.

“Our partnership leverages the power of technology to address major pain points for New KCC. It illustrates the expanding ability of Safaricom to apply our intimate market knowledge to solve some of the Kenyan business’ most pressing challenges,” said Bob Collymore, Chief Executive Officer, Safaricom.

The New KCC Lipa Na M-Pesa platform comes six years after the company introduced SAP 1, an enterprise resource planning tool which successfully automated its business operations. The two will systems will work together.

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. Safaricom also enabled Kenya Tea Development Agency (KTDA) to roll out a cashless payment solution to all its 66 factories across the country.

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