Microsave’s latest research on the impact of the COVID 19 on CICO agents in Kenya provides a comprehensive overview of the challenges that CICO agents currently face and their coping strategies. The report provides recommendations for policymakers and financial service providers to support them.
The report highlights that the CICO agents face severe health risks while continuing business operations during the pandemic. It looks at the support that agents seek from financial service providers to help them increase compliance with safety measures. Due to a rapid decline in customer footfall, reduction in operating hours, a significant fall in volume and value of transactions, and waivers on transaction tariffs, CICO agents have suffered more than 40% decline in their income generated through commissions.
With volatility in transactions and loss of income from secondary sources, CICO agents face challenges as they maintain liquidity and e-float. The report offers recommendations to financial services providers and the government for a concerted action to address these challenges.