Britam eyes low income earners with savings tool

Financial services firm Britam has lowered the entry level of its savings product in an effort of taping the lower end of the market.

Britam, through its asset management subsidiary, has created a fund that allows investors to save as little as a thousand shillings in a drive meant to improve the country’s savings culture.

Previously investors had to part with Sh10,000, locking out millions of would be investors with limited income.

Britam Asset Managers chief executive officer Ken Kaniu said for long financial services companies especially insurance firms have been unable to create products that appeals to the masses.

“Many Kenyans have been locked out from saving and investing their money because of the big initial capital amounts needed in the money market. This fund has therefore been designed to address the needs of the small saver,” Mr Kaniu said.

According to the World Bank 2016 Kenya country report, Kenya is lagging behind in savings compared to other economies in the region.

The government has also been forced to tailor investment products that appeal to the larger population with the launch of the M-Akiba bond that allows investors invest as little as Sh3,000 down from a minimum investment of Sh50,000 on government securities.

Mr Kaniu said the Britam fund targets Kenyans who seek to invest in low risk, but high interest earning instruments.

Players in the capital markets have been looking for alternative channels and investment tools to woo investors who have for long had limited choices.

Report by Victor Marita