[kictanet] Kenya IGF Online Discussions. Day 3. Developments in Fintech and E-commerce

Ali Hussein ali at hussein.me.ke
Tue Jul 17 09:11:48 EAT 2018


John

Thanks. This is educative. Much appreciated.

*Ali Hussein*

*Principal*

*AHK & Associates*



Tel: +254 713 601113

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: http://ke.linkedin.com/in/alihkassim
<http://ke.linkedin.com/in/alihkassim>


13th Floor , Delta Towers, Oracle Wing,

Chiromo Road, Westlands,

Nairobi, Kenya.

Any information of a personal nature expressed in this email are purely
mine and do not necessarily reflect the official positions of the
organizations that I work with.

On Mon, Jul 16, 2018 at 3:42 PM, mauxdatabase via kictanet <
kictanet at lists.kictanet.or.ke> wrote:

> Hi Ali,
>
> The problem is definitions have gotten muddled up by the wave(s) of
> blockchain hype.
>
> The original definition of Blockchain contains these key components are
> married to each other.
>
>    - Protocol; Consensus rules for how Blockchains/Crypto-currencies
>    work. Enforced by primarily 2 methods proof-of-work and proof-of-stake.
>    - Distributed Legder; This is usually confused with the Blockchain.
>    This is the collection of blocks sequentially linked(Chain) of processed
>    transactions.
>    - Currency; This the reward token paid to miners/stakers who process
>    the transactions, create the blocks and chain them together using the rules
>    defined in the protocol.
>    - Software; This is open-source for verification and is why we trust
>    the above. The Software can be optimized continously but usually the
>    protocol is more rigid;
>
> So to answer your question; the Distributed Ledger without the other
> components is not really useful, in-fact databases are much more efficient.
>
> Best,
>
> John K
>
>
> On Sat, Jul 14, 2018 at 10:40 AM, Admin CampusCiti via kictanet <
> kictanet at lists.kictanet.or.ke> wrote:
>
>> Great conversations.
>>
>> I particularly like the angle of sovereignty brought out by Rosemary.
>> However as we navigate this space we need to be careful not to put
>> ourselves in an island and ‘Balkanize ‘ the BlockChain.
>>
>> @John, the whole aspect of BlockChain is decentralized and the
>> tokenization model is intrinsic to its value proposition. I’lol be keen to
>> understand how that would work without tokenization. Happy to discuss this
>> point.
>>
>> On innovation and funding of startups in Africa there’s been an alleged
>> bias towards ‘foreigners’. My take on that is that those allegations are
>> too simplistic. As a country and continent we MUST fund our own startups
>> and not wait for ‘handouts’ from the West. Money is racist, tribal and
>> parochial. It is what it is.
>>
>> Regards
>>
>> *Ali Hussein*
>>
>> +254 0713 601113
>>
>> Twitter: @AliHKassim
>>
>> Skype: abu-jomo
>>
>> LinkedIn: http://ke.linkedin.com/in/alihkassim
>> <http://ke.linkedin.com/in/alihkassim>
>>
>> Blog: www.alyhussein.com
>>
>> "Discovery consists in seeing what everyone else has seen and thinking
>> what no one else has thought".  ~ Albert Szent-Györgyi
>>
>> Sent from my iPad
>>
>> On 13 Jul 2018, at 8:17 PM, carolyne mimano via kictanet <
>> kictanet at lists.kictanet.or.ke> wrote:
>>
>> Actually cryptocurrencies are enabled by blockchain technology.Blockchain
>> being the underlying technology it can run independently of
>> cryptocurrency.And a lot of blockchain technologies actually do not involve
>> cryptocurrencies.
>> Blockchain has also developed into other more recent technologies such as
>> ethereum and has been successful.
>> Just like the example of Safaricom which just recently relocated its data
>> centre from Europe-Germany to Kenya a lot of our blockchain use will be
>> internationally located until the technology and expertise is vast.
>>
>> Regards
>> Carolyne
>>
>> On Fri, 13 Jul 2018, 8:03 pm mauxdatabase via kictanet, <
>> kictanet at lists.kictanet.or.ke> wrote:
>>
>>> Rosemary, on Blockchain, you bring up very important points to consider;
>>>
>>> I am yet to see any successful and publicly verifiable use of
>>> Blockchain(Distributed Ledger) without the aspect of the Crypto-Token; the
>>> 2 go hand in hand.
>>>
>>> Since blockchains are global in nature, its not really a matter of
>>> sovereignty in my opinion, but the presence of skilled expertise within
>>> ones borders or organizations is key to maintain a competitive edge.
>>>
>>> Blockchain programmers are currently very expensive to train; which
>>> makes Building and Deploying Blockchain Applications expensive and not
>>> easily in our reach.
>>>
>>> Thus the Asians, Americans and Europeans are racing to scope up this
>>> talent and own the space with their respective Blockchain implementations.
>>>
>>> We must do the same, as the future Internet will be tokenized;
>>>
>>> In my opinion some of this has to do with policy and rest is building
>>> focused dev communities that tap into Blockchain for various use-cases(
>>> Title Deed Verification etc).
>>>
>>> Thankfully Kenya already has a budding community; but it needs
>>> mentorship and capital to thrive!!! Again progressive policies can help
>>> here....
>>>
>>> My 2 cryptos.
>>>
>>> John K.
>>>
>>>
>>> On Fri, Jul 13, 2018 at 5:40 PM, Rosemary Koech-Kimwatu via kictanet <
>>> kictanet at lists.kictanet.or.ke> wrote:
>>>
>>>> Dear Listers,
>>>>
>>>> Allow me  to respond to questions 1 & 4.
>>>>
>>>> 1. We must not apologize for the speed with which we are moving.
>>>> Innovation is our locally developed solution for our local challenges and
>>>> we have been successful so far. That said, it is important for us to be
>>>> introspective and to address the challenges, some of which have been
>>>> covered in this thread so far. Light regulation will create the most
>>>> conducive environment for innovation to thrive.
>>>>
>>>> 2. Blockchain has been quite the buzzword and most enthusiasts can
>>>> recite potential use cases. The truth however that it is still a fairly
>>>> nascent technology and we have just began to explore it's  possibilities.
>>>> From a policy perspective, there will need to be a purposeful interrogation
>>>> of the the interplay between the tokens/cryptos the blockchain platforms
>>>> that come with it especially in public service use cases. Should we then
>>>> develop our own blockchain platforms whose tokens and management including
>>>> mining  will have an element of sovereignty?
>>>>
>>>> Kind regards,
>>>>
>>>> On Fri, Jul 13, 2018 at 12:31 PM, Ali Hussein via kictanet <
>>>> kictanet at lists.kictanet.or.ke> wrote:
>>>>
>>>>> Good people
>>>>>
>>>>> Good conversations.  Keep them coming. There are some questions
>>>>> addressed to me and I will endeavour to respond to them at some point
>>>>> today.
>>>>>
>>>>> Thank you all!
>>>>>
>>>>> *Ali Hussein*
>>>>>
>>>>> *Principal*
>>>>>
>>>>> *AHK & Associates*
>>>>>
>>>>>
>>>>>
>>>>> Tel: +254 713 601113
>>>>>
>>>>> Twitter: @AliHKassim
>>>>>
>>>>> Skype: abu-jomo
>>>>>
>>>>> LinkedIn: http://ke.linkedin.com/in/alihkassim
>>>>> <http://ke.linkedin.com/in/alihkassim>
>>>>>
>>>>>
>>>>> 13th Floor , Delta Towers, Oracle Wing,
>>>>>
>>>>> Chiromo Road, Westlands,
>>>>>
>>>>> Nairobi, Kenya.
>>>>>
>>>>> Any information of a personal nature expressed in this email are
>>>>> purely mine and do not necessarily reflect the official positions of the
>>>>> organizations that I work with.
>>>>>
>>>>> On Fri, Jul 13, 2018 at 10:46 AM, WANGARI KABIRU via kictanet <
>>>>> kictanet at lists.kictanet.or.ke> wrote:
>>>>>
>>>>>>
>>>>>>
>>>>>> " The solution (innovation) is what we most clearly see and what
>>>>>> gets us most excited. But our stakeholders don’t necessarily see what we
>>>>>> see. More important, their goals are different. They don’t care about our
>>>>>> solution but rather about a business model story that promises them a
>>>>>> return on their investment within a set time frame." - Ash Maurya
>>>>>>
>>>>>> Traction, traction, traction...
>>>>>> @Barrack, your Wakanda should to know the above by now.
>>>>>>
>>>>>>
>>>>>> Be blessed.
>>>>>> Regards/Wangari
>>>>>> ---
>>>>>> Pray God Bless. 2013Wangari circa - "Being of the Light, We are
>>>>>> Restored Through Faith in Mind, Body and Spirit; We Manifest The Kingdom of
>>>>>> God on Earth".
>>>>>>
>>>>>>
>>>>>> On Friday, 13 July 2018, 10:10:25 GMT+3, Barrack Otieno via kictanet <
>>>>>> kictanet at lists.kictanet.or.ke> wrote:
>>>>>>
>>>>>>
>>>>>> Dear Carolyne,
>>>>>>
>>>>>> Many thanks for your insightful responses. Is there any capital flight
>>>>>> or would you say the funds are wholly invested locally?
>>>>>>
>>>>>> Best Regards
>>>>>>
>>>>>> On 7/13/18, carolyne mimano <carolynemimano at gmail.com> wrote:
>>>>>> > Hi Barrack,
>>>>>> > Having worked first hand in tech startups and innovation i can tell
>>>>>> you
>>>>>> > that a lot of the investors are interested in international
>>>>>> cofounders as
>>>>>> > oppossed to local.Mainly because we do not invest in our own.A lot
>>>>>> of
>>>>>> > cofounders who get funding are those who leave silicon valley for
>>>>>> > Nigeria,Kenya and south Africa.Unfortunately we still prefer to
>>>>>> invest in
>>>>>> > property -land etc as compared to research and innovation which is
>>>>>> one of
>>>>>> > the reasons why a huge chunk of tech is foreign led.
>>>>>> > Research on tech and innovation should start with the younger
>>>>>> > generation.Note people like Mark Zuckerberg had programming tutors
>>>>>> in
>>>>>> > middle school.
>>>>>> > Nairobi Innovation week is just a meeting place for tech
>>>>>> enthusiasts,
>>>>>> > investors and startups looking for funding.A lot of work needs to
>>>>>> happen
>>>>>> > all year round behind the scenes.
>>>>>> > And yes the government needs to invest more in research as well as
>>>>>> we(the
>>>>>> > community) investing more in growing the next generation of
>>>>>> innovators.
>>>>>> >
>>>>>> > kind regards
>>>>>> > Carolyne
>>>>>> >
>>>>>> > On Fri, 13 Jul 2018, 9:23 am Barrack Otieno via kictanet, <
>>>>>> > kictanet at lists.kictanet.or.ke> wrote:
>>>>>> >
>>>>>> >> Hi Ali,
>>>>>> >>
>>>>>> >> 1. We have made many gains in the Fintech and E-Commerce space due
>>>>>> to
>>>>>> >> a conducive Policy environment. I am curious to understand why our
>>>>>> >> market is attracting a lot of venture capital. Is it that we are
>>>>>> >> innovative or do we offer cheap labor?, is there any capital flight
>>>>>> >> associated with the Venture Capital that is being channeled into
>>>>>> our
>>>>>> >> market. I ask this considering the long debate about who invented
>>>>>> and
>>>>>> >> owned MPESA. It eventually turned out that after all it was not a
>>>>>> >> Kenyan.
>>>>>> >> 2. How much is the Kenyan Government through the parent Ministry of
>>>>>> >> Information and Communications Technology pumping into the FINTECH
>>>>>> and
>>>>>> >> Innovation Space. Better still do we have any Research and
>>>>>> Development
>>>>>> >> fund to support the sector beyond the Nairobi Innovation Week. I
>>>>>> >> appreciate the fact that we have a CS who is at the fore front of
>>>>>> >> Innovation but are we matching the same with the kind of budget
>>>>>> being
>>>>>> >> allocated to the Standard Gauge Railway?
>>>>>> >> 3. I would also like to find out from listers that might be in the
>>>>>> >> know , how many Kenyans have access to mobile money and gaps if any
>>>>>> >> that might exist. Is there any research that has been done that is
>>>>>> >> showing the current status of the Fintech and e-commerce
>>>>>> eco-system.
>>>>>> >>
>>>>>> >> asking for Wakanda
>>>>>> >>
>>>>>> >> On 7/12/18, Ali Hussein via kictanet <
>>>>>> kictanet at lists.kictanet.or.ke>
>>>>>> >> wrote:
>>>>>> >> > Dear listers.
>>>>>> >> >
>>>>>> >> > Since the advent of Mpesa, Kenya has been recognized as Ground
>>>>>> Zero for
>>>>>> >> > Mobile Money/Payments Innovation the world over. According to a
>>>>>> World
>>>>>> >> Bank
>>>>>> >> > report one in every ten human beings regularly using mobile
>>>>>> money is a
>>>>>> >> > a
>>>>>> >> > Kenyan.
>>>>>> >> >
>>>>>> >> > Over the last few years Fintech (Financial Technology) has
>>>>>> become all
>>>>>> >> > the
>>>>>> >> > rage. American startups are setting up in Kenya. The more common
>>>>>> ones
>>>>>> >> that
>>>>>> >> > we know are Branch and Tala who combined have raised over $150m
>>>>>> of
>>>>>> >> venture
>>>>>> >> > funds in the last few years. These two are mainly mobile lending
>>>>>> >> platforms.
>>>>>> >> > Insuretech is taking root. Payment Platforms are proliferating.
>>>>>> Banks
>>>>>> >> > are
>>>>>> >> > jumping onto the Fintech Bandwagon with mainstream banks like
>>>>>> Barclays
>>>>>> >> and
>>>>>> >> > HF Group launching their mobile lending apps. Equity Bank boldly
>>>>>> >> announced a
>>>>>> >> > few weeks ago that they are building an API Bank. Banking as a
>>>>>> Service
>>>>>> >> as it
>>>>>> >> > were.
>>>>>> >> >
>>>>>> >> > Not to be left out, Blockchain and it’s offspring, Bitcoin is
>>>>>> threading
>>>>>> >> to
>>>>>> >> > complete the upheavals in the financial sector. On top of it all
>>>>>> the
>>>>>> >> > government is playing catch up on regulation with the
>>>>>> announcement of
>>>>>> >> > the
>>>>>> >> > Finance Bill 2018. See analysis from KPMG on this.
>>>>>> >> >
>>>>>> >> >
>>>>>> >> https://home.kpmg.com/ke/en/home/insights/2018/06/finance-bi
>>>>>> ll-2018-analysis.html
>>>>>> >> >
>>>>>> >> > To ponder:-
>>>>>> >> >
>>>>>> >> > 1. Are we moving too fast? Is there a need to take a chill pill
>>>>>> and
>>>>>> >> reflect
>>>>>> >> > on the gains and achievements of the sector?  Should we regulate
>>>>>> >> > lightly
>>>>>> >> or
>>>>>> >> > heavily?
>>>>>> >> >
>>>>>> >> > 2. Should we regulate and cap the mobile lending platforms? Are
>>>>>> they
>>>>>> >> playing
>>>>>> >> > a crucial role of financial inclusion or are they just loan
>>>>>> sharks on
>>>>>> >> > steroids?
>>>>>> >> >
>>>>>> >> > 3. How about the Credit Reference Bureaus? Are they stuck in a
>>>>>> time
>>>>>> >> > warp
>>>>>> >> or
>>>>>> >> > is the legislation in place encumbering them from innovation?
>>>>>> >> >
>>>>>> >> > 4.  Lastly is the BlockChain conversation being overhyped? And
>>>>>> how do
>>>>>> >> > you
>>>>>> >> > separate the technology from the cryptocurrencies it spawns?
>>>>>> >> >
>>>>>> >> > Over to you Listers.
>>>>>> >> >
>>>>>> >> > Ali Hussein
>>>>>> >> > Principal
>>>>>> >> > AHK & Associates
>>>>>> >> > +254 0713 601113
>>>>>> >> >
>>>>>> >> > Twitter: @AliHKassim
>>>>>> >> > Skype: abu-jomo
>>>>>> >> > LinkedIn: http://ke.linkedin.com/in/alihkassim
>>>>>> >> >
>>>>>> >> > "We are what we repeatedly do. Excellence, therefore, is not an
>>>>>> act but
>>>>>> >> > a
>>>>>> >> > habit."  ~ Aristotle
>>>>>> >> >
>>>>>> >> >
>>>>>> >> > Sent from my iPad
>>>>>> >>
>>>>>> >>
>>>>>> >> --
>>>>>> >> Barrack O. Otieno
>>>>>> >> +254721325277
>>>>>> >> +254733206359
>>>>>> >> Skype: barrack.otieno
>>>>>> >> PGP ID: 0x2611D86A
>>>>>> >>
>>>>>> >> _______________________________________________
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>>>>>> nemimano%40gmail.com
>>>>>> >>
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>>>>>> >>
>>>>>> >
>>>>>>
>>>>>>
>>>>>> --
>>>>>> Barrack O. Otieno
>>>>>> +254721325277
>>>>>> +254733206359
>>>>>> Skype: barrack.otieno
>>>>>> PGP ID: 0x2611D86A
>>>>>>
>>>>>> _______________________________________________
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>>>>>> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder
>>>>>> platform for people and institutions interested and involved in ICT policy
>>>>>> and regulation. The network aims to act as a catalyst for reform in the ICT
>>>>>> sector in support of the national aim of ICT enabled growth and development.
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>>>>>>
>>>>>
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>>>>> platform for people and institutions interested and involved in ICT policy
>>>>> and regulation. The network aims to act as a catalyst for reform in the ICT
>>>>> sector in support of the national aim of ICT enabled growth and development.
>>>>>
>>>>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
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>>>>>
>>>>
>>>>
>>>> --
>>>> Rosemary Koech-Kimwatu
>>>> Advocate
>>>> Legal and Regulatory Specialist- Oxygene MCL
>>>> Tel: +254 718 181644
>>>>
>>>>
>>>>
>>>>
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>> for people and institutions interested and involved in ICT policy and
>> regulation. The network aims to act as a catalyst for reform in the ICT
>> sector in support of the national aim of ICT enabled growth and development.
>>
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>> for people and institutions interested and involved in ICT policy and
>> regulation. The network aims to act as a catalyst for reform in the ICT
>> sector in support of the national aim of ICT enabled growth and development.
>>
>> KICTANetiquette : Adhere to the same standards of acceptable behaviors
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>
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> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> for people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
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