Mobile firm launch cashless payments service to tea factories

The Kenya Tea Development Agency (KTDA) factories, which transact approximately 10.3 million U.S. dollars annually through the Factory Door Sales (FDS), will now receive payments using the Safaricom mobile money solution M-PESA, and also addressing long- standing concerns regarding security of factory employees who handle cash.

"The adoption of M-PESA as the sole payment option at our factories lowers the overall inherent cash handling risks and will increase accountability," KTDA CEO Lerionka Tiampati said in Kirinyaga, central Kenya.

"This move will translate into significant savings and better revenue management, which will in turn lead to increased returns," he added.

Tiampati said all payments for tea at the factories will be made to a unique till number assigned to each payment point.

Rather than pay for their purchases using cash at the factory door, tea buyers will make their purchases using the cashless system.

Once the FDS transactions are initiated, they will be approved by the factory management instantly before being pushed to the Treasury Department, where the revenues will be recorded and sale approvals given.

Bob Collymore, Chief Executive Officer of Safaricom, said the initiative will transform the entire payments cycle for farmers and KTDA factories.

"As we continue deepen M-Pesa’s utility beyond person-to-person payments, this partnership demonstrates the ability of the service to provide an efficient payments channel for industries," Collymore said.