New PostaPay money transfer service.

Kenyans now have a new and cheaper way of sending money around the country - PostaPay - the East African Standard reports. Launched by the international private company Postal Corporation of Kenya (Posta) in partnership with US-based company Afripayments Llc, the service costs between KSh100 and KSh1,100 for a transfer of up to Sh75,000, against the Ksh500-KSh2,200 charged by money transfer services Western Union and Moneygram for the same amount. However, the transaction fee is due to be revised in mid-January.

PostaPay, which replaces the old money order and postal order services, is part of a Posta strategy to diversify core services following the advent of new telecommunications technologies such as mobile telephones and internet. It currently operates through 130 post offices country-wide and is due to be extended to a further 400 outlets over the next six months, as well as being expanded to include international money transfers in early 2007. Posta also says it will introduce automatic teller machines (ATMs) at all post offices offering PostaPay services in due course.