Onzoma said the partnership with UAP means insurance premiums can be paid through Airtel's mobile money platform. "UAP will also pay claims to eligible customers who subscribe to Airtel network," said Isaac Gunda, UAP's general manager.

"The service targets mostly customers who fall in the micro-insurance profile like individuals, traders as well as small and medium enterprises who usually queue up to pay but will now be able to do that at their own time and convenience using their mobile phones," Gunda said. UAP customers will spend less time and money when they use this service as compared to paying through banks which charge a high transaction fee, he said.

Onzoma said Airtel's mobile money platform will be the world's biggest cross-border mobile commerce service.

"With Airtel Money, our customers will soon be able to make cross-border payments and transfers between Kenya, Tanzania and Uganda with no extra charge," he said.

Airtel Money's services will not be limited to money transfers but will also include mobile airtime transfer, mobile banking, mobile merchant payment and cross-border money transfer.