Impact of the COVID-19 pandemic on CICO agents- Kenya report

• by Diana Siddiqui, Evelyne Matibe, Olivia Obiero and Anup Singh
• Jan 14, 2021
• 1 min
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This report highlights the findings of the second round of the dipstick research jointly funded by MSC and SCBF. It captures a detailed analysis of the impact of COVID-19 on CICO agents and their coping strategies. The report further provides recommendations for policymakers and financial service providers to support their recovery.

Although CICO agents have been at the forefront of the social cash transfer program of the government during the COVID-19 pandemic which provided agents with some additional income. However, the commissions of CICO agents took a hit, which in turn affected the viability of the agency business. This was mainly due to the extension of fee waivers on bank-to-bank and bank-to-mobile wallet transactions and fee waivers on mobile wallet transactions up to KES 1,000 (~USD 100), along with low customer footfall. Liquidity remains a top concern for many agents as they lack adequate resources. Agents, therefore, need access to concessionary loans or stimulus packages from the government to revive their businesses as the economy gradually reboots. Our new report captures the challenges in agency operations and the coping strategies of CICO agents. It also provides recommendations for policymakers, financial institutions, and donor organizations to support the recovery of CICO agents.