Old Mutual Life Assurance Company and Faulu Insurance Agency, a subsidiary of Faulu Microfinance Bank, which is part of UAP Old Mutual Group, have signed a Memorandum of Understanding (MoU) with KARA, to provide a framework for collaboration on areas of mutual interest. These include financial literacy program and generating financial solutions that are beneficial to resident associations,
The partnership will also see the parties collaborate in developing other products tailored for KARA membership and carry out awareness programs to enable members of the associations make informed choices. and other joint activities at national and county level. KARA is the umbrella body for over 1,300 resident associations in Kenya with over 0.25 million members across the country.
KARA Chief Executive Officer Henry Ochieng hailed the partnership saying the organisation’s members will greatly benefit from access to innovative financial solutions.
“This partnership fits in well with KARA’s value system at the core of which is our members’ welfare. As a responsible society, we seek to establish partnerships that will provide our members with financial solutions to help cushion them from financial shocks arising from unforeseeable events.” said Mr. Ochieng.
UAP Old Mutual Life Business Group Managing Director Jerim Otieno said KARA members will gain from financial knowledge delivered through webinars, articles and other materials sponsored by the company.
“We are delighted to be partnering with KARA to collaborate on areas of mutual interest and specifically, create financial solutions that meet the unique needs of KARA members,” said Mr. Otieno.
He added that financial literacy is crucial in empowering individuals and families to make the right decisions regarding risks. “This partnership will also build on our commitment to promoting financial inclusion in the society.”
On his part, Faulu Bank CEO Apollo Njoroge said the institution will target to grow uptake of the various products to be developed under the partnership. The Bank launched an automated bancassurance system in February this year at a cost of Ksh20 million.
“Bancassurance is an important part of our business. With the new system we are able to sell a wide range of products through our network of 60 branches countrywide. We are targeting to enlist at least 100,000 members from the KARA network within the first six months”,” explained Mr. Njoroge.
He added that since the system went live, Faulu has been enrolling at least 1,500 bancassurance clients each month.
Bancassurance involves the sale of insurance products and services through banks and microfinance institutions. Under the MoU, UAP Old Mutual Group will also sponsor KARA events including the Annual Resident Associations Excellence Awards and the National Resident Associations Summit.