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Musoni Microfinance Kenya: IT-enabled business model

Freddie Racosas Acosta (Strathmore University, Nairobi, Kenya)
Samuel Ndonga (Strathmore Business School, Nairobi, Kenya)

Emerald Emerging Markets Case Studies

ISSN: 2045-0621

Publication date: 18 February 2014


Subject area

Management Information Systems, Innovation Management, Strategic Management, Strategic Leadership, Organizational Development, Financial Management, Risk Management and Corporate Governance.

Study level/applicability


Case overview

Musoni Kenya is a Kenyan microfinance institution (MFI) whose idea was conceived in The Netherlands. The Musoni business model is ICT-enabled, 100 percent mobile based, virtually paperless, and runs on an ICT platform housed in Musoni BV in Amsterdam, The Netherlands. It is built on tested mobile technology that allows huge savings on transaction and operating costs. Using mobile payments, clients receive and perform bank operations anytime anywhere. This saves transport costs, transaction time and increases safety as no cash has to be carried around sometimes in dangerous areas. The mobile payments enable clients to make large improvements in loan officer efficiency and makes tracing payments seamless, saving on administration costs. The Musoni branches are also inexpensive as they are only used as the point of contact with customers hence reducing the cost of setting up operations even in remote areas. These efficiencies are passed on to clients in the form of lower interest rates and to stakeholders in the form of good returns on investments. The company aims to use this knowledge, experience and global ICT platform to expand to other countries with a suitable mobile payments environment.

Expected learning outcomes

The objective of this case is to illustrate general innovation concepts in a leading microfinance company in Kenya. The case documents the innovation dilemma facing the management of the fledgling microfinance company in determining the pace of innovation and the feasibility of launching of a similar service in Uganda following the successful establishment and growth of the company in Kenya.

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or email: to request teaching notes.



Acosta, F.R. and Ndonga, S. (2014), "Musoni Microfinance Kenya: IT-enabled business model", Emerald Emerging Markets Case Studies, Vol. 4 No. 1.



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