Dar es Salaam. A new microfinance company yesterday launched five new branches in Dar es Salaam to boost service delivery, as it targets to reach more Tanzanians.
Dubbed Y9 Microfinance, the company provides financial services to the unbanked and access to insurance and health products through mobile phones.
The five branches are located at Makumbusho, Mbezi Louis, Tandika, Kigamboni and Buguruni.
These branches will increase convenience to customers who can’t afford a direct purchase of a smartphone and are looking for financing options.
Speaking during the launch, Y9 CEO Faith Pella said the move is in line with its strategy to grow Y9 Microfinance business by taking the smartphone loan services closer to its customers.
“We are offering 4G smartphone loan services to different groups including the employed, entrepreneurs and individuals” she said.
“We are delighted to inform our customers that they can now access our services conveniently at our Y9 centers across Dar es Salaam and we will continue to open up in every region to reach more customers in the country,” She continued.
This device financing compliments the partnership between Y9 and Samsung that aims at offering affordable yet quality smartphones to Tanzanians.
“Customers can now easily get a smartphone for a downpayment of Sh40,000 through Y9 Microfinance and pay as low as 2,000 per day as loan repayment, “ The Y9 CEO stated.
“We have started with smartphone financing, and we are layering more products and services in order to give our customers quality financial services that will be available in our Y9 application.
“Y9 is committed to delivering meaningful financial inclusion through digital financial services that will impact the social and economic life of people of Tanzania.”
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Britam half-year net profit hits Sh2bn on higher investment income
Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
