[kictanet] #KeIGF15 Online Discussions Day Three: Internet Economy

Wed Jul 22 12:03:21 EAT 2015

Listers,

First it will be good to know if the government has enough data on the
eCommerce environment in Kenya. Thereafter such a study, it will be
possible to create a better revenue analysis model that will allow the
taxman to benefit at the same time enabling the govt to create a conducive
environment to encourage and catalyze the Internet economy.

Regards
Gideon Rop

Hi Barrack,
> Thank you for the the questions.
> @ Fred on the issue of taxation for the Internet economy....
>
> I was listening to a representative from Jumia the other day on radio. By
> her presentation, the volume of merchandise moved per day is quite high and
> this business is really catching on in Kenya. If I remember they had an
> increase of 900%in turnover in Africa. While they warn that the high sales
> have not yet translated into profit, the whole business model is
> interesting and at some point the government will want a share of the
> profits. The same will happen to the cloud economy and other Internet
> businesses, if what happened in Chicago is anything to go by.
>
> However, more needs to be done on consumer education and protection. For
> example, when one buys a phone online and it is faulty, should the online
> company collect, repair or replace the phone or should the consumer take
> the phone to the service centre?
> Consumer protection can either be done through self regulation where the
> online companies make very good policies on dealing with consumer
> complaints. Otherwise , the companies cannot be responsive, then the
> law/its enforcement must be strengthened.
>
> Regards,
>
>
> 2015-07-22 7:42 GMT+03:00 Barrack Otieno via kictanet <
> kictanet at lists.kictanet.or.ke>:
>
> > Listers,
> >
> > The rise of the Internet economy in Kenya has been defined by
> > different strokes. On  one hand there are small entrepreneurs doing
> > their side hustles from offices, small shops and car boots. They
> > advertise their merchandise and services on social media and in a
> > rudimentary form, some deliver merchandise in backpacks from door to
> > door.
> > Enter the bigger players who have large websites from where goods and
> > services are purchased. Their business models differ. We have
> > companies like  OLX, Cheki  that provide a platform for users to
> > interact. They make their money from advertising. Others such as Rupu
> > and Jumia offer services and merchandise at  reduced prices.
> >
> > Questions
> >
> > 1. Does  an adequate legal framework exist to protect consumers from
> > fraud, deficient goods and services and to assure consumer rights in
> > the budding Internet economy?
> > 2. Since the bigger players in the sector are doing well, is time ripe
> > for the local Internet economy to be taxed to raise money for
> > government services?
> > 3. Should other services in the Internet economy such as cloud
> > services, international online purchases etc be taxed?
> > 4. As a stakeholder , what are your recommendations on how the
> > Internet economy can be improved?
> >
> > The floor is open, feel free to continue contributing to the
> > discussions of the previous days.
> >
> > _______________________________________________
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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,
> > share knowledge, don't flame or abuse or personalize, respect privacy, do
> > not spam, do not market your wares or qualifications.
> >
>
>
>
> --
> Grace L.N. Mutung'u
> Nairobi Kenya
> Skype: gracebomu
> Twitter: @Bomu
>
> <http://www.diplointernetgovernance.org/profile/GraceMutungu>
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> Message: 2
> Date: Wed, 22 Jul 2015 08:45:32 +0000 (UTC)
> From: Walubengo J <jwalu at yahoo.com>
> To: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
> Subject: Re: [kictanet] Anonymous hacks Kenya Defence Forces Twitter
>         account
> Message-ID:
>         <438978152.271039.1437554732948.JavaMail.yahoo at mail.yahoo.com>
> Content-Type: text/plain; charset="utf-8"
>
> @Liz,
> I consider security to be in the same league as insurance. No one wants to
> shoulder the cost of insurance since they believe disaster only happens to
> others. ?People take certain types of insurance (e.g. vehicle, employee,
> etc) seriously simply because the law mandates them to.
> That is why I agree with what Eng. J. Kariuki said as copied below. ?It is
> about the laws & regulations. In Kenya we are still awaiting the following
> security related laws:
> i) Data Protection Act (force data handlers to care for data collected)ii)
> e-Transaction Act (provide framework for electronic
> contracts/transcations)iii) Cybercrime Act (provide comprehensive framework
> for investigation, handling and prosecuting e-Crimes)iv) Access to
> Information Act(formerly Freedom of Info Act)-provide framework of
> government to disclose/share public interest data.
> Unless and until the above legal regime kicks in, we shall remain the
> weakest link in the global chain of defence against cybercrime.
> walu.?
>
> ??
>       From: Liz Orembo via kictanet <kictanet at lists.kictanet.or.ke>
>  To: jwalu at yahoo.com
> Cc: Liz Orembo <lizorembo at gmail.com>
>  Sent: Wednesday, July 22, 2015 10:02 AM
>  Subject: Re: [kictanet] Anonymous hacks Kenya Defence Forces Twitter
> account
>
>
> Listers,
>
> For the day 2 KeIGF online discussion on Cyber Security and Trust, allow
> me to take you back to last year KICTANet's thread when anonymous Kenya
> hacked KDF Twitter accounts. Key issues were raised with no follow ups.
> 1.The govt not consulting local talent which has skills and capacity and 2.
> appreciation of digital security risks by various industries. It seems like
> nothing much has changed. How do we take it forward?
>
>
> On Mon, Jul 21, 2014 at 8:22 PM, John Kariuki via kictanet <
> kictanet at lists.kictanet.or.ke> wrote:
>
>
>
> Matunda,Listers,You are right.Breaches on cyber security need serious
> attention.
> The ICT Policy in 2006 summarized the matter as follows:
> "Electronic Security: The challenge is for the country to establish an
> adequate legal framework and capacity to deal with national
> security,network security,cyber-crime and cyber-terrorism; and to establish
> mechanisms for international cooperation to combat cross-border crimes.An
> e-security structure will be developed in collaboration with the relevant
> institutions." ? Since 2006, matters the situation has become even worse
> than envisaged at that time due to increasing use of on-line services and
> Broadband Networks.
> John Kariuki
>
>      On Monday, 21 July 2014, 17:38, Matunda Nyanchama via kictanet <
> kictanet at lists.kictanet.or.ke> wrote:
>
>
>
> On this score, I have made some observations:
> - our people don't take seriously such breaches; I read an attitude of
> this sort: "it is a small irritant that will come." This is especially so
> for the public sector but also (to a small extent) private sector. Indeed,
> organizations like banks can afford to underwrite huge losses through
> marginal variation in interest rates.
> - there is no concerted effort to develop needed skills in this area in
> order to tackle/forestall such problems. With such skills in mind we would
> design, implement and continually monitor and respond to incidents based on
> best practices. (Note: there are no guarantees that one won't be hacked but
> one can minimize such damage as: reputation, loss/modification of
> information, etc.)
> - we seriously need leadership in this space nationally (both in public
> and private sectors); if there exists any, it is not felt. Such leadership
> would be evangelistic in nature pushing for appreciation of such risks and
> how to deal with them. Such awareness would raise concern (hopefully) and
> thus assure allocation of commensurate resources (people, money,
> technology, etc.) to confront the problem. (NB: my experience in North
> America tells me that this area is very much underfunded and whatever
> little funding comes through would be spent on easy to acquire stuff like
> CCTV ... some installed without requisite processes, skills, etc for
> maximum gain (ROI) ...)
> - many technology managers (and many others in management) treat security
> with obscurity. Keep things obscure and profess security. I once was in a
> discussion with a senior official in GoK and heard things such as: we
> cannot disclose what measures we have taken to protect government
> information because the same can be used by you people to target us! He
> failed to appreciate that you can still be hacked with use of known
> reconnaissance approaches. OK: if you really want help, get some of our top
> talent, give them security clearance and allow them to build robust systems
> that assure security.
> - a friend recently gave the story of a manager (a protege of top
> management) that kept his job, protected by his benefactors but who many
> knew wasn't performing. This manager could continually avoid bringing in
> talent that might help him but which talent may also expose his failing!
> Only when the organization was hit and top management embarrassed with loss
> (material, reputational) did they hire an external consultant whose report
> exposed the manager's fraud that he had perpetuated for years on end! ...
> long story short, he was given a soft landing, and slowly eased out of the
> organization. ... Lesson: get the right talent and skills for the job if
> indeed you are committed to delivering in your mandate.
> BTW: we are into consulting and training in this area. I know of bids we
> have lost on (despite presenting the best technical proposals)??because of
> other considerations. Your guess is as good as mine as to why, but don't be
> surprised to have some "wired/connected" individuals winning security
> assignments but which they can't deliver on; and if they do, the result
> would be sloppy and why ... because they engage unskilled people ....
> - Finally (for now), the compliance regime is extremely weak! I know a
> thing or two about the Auditor General's office and information security
> skills isn't one of their strengths. The focus on financial audit (recently
> they reported Kshs 300 + billion unaccounted for) takes all the attention
> while other aspects go unattended: critical infrastructure protection, ICT
> specification/acquisition/deployment/management/.../disposal ... all go
> unattended.
> ... there is a lot to say; let this suffice for today.?
>
> ?----------------------------------------------------------------------------------------------
> Matunda Nyanchama, PhD, CISSP; mnyanchama at aganoconsulting.com
> Agano Consulting Inc.;? www.aganoconsulting.com; Twitter:?nmatunda;?
> Skype: okiambe
> ----------------------------------------------------------------------------------------------Manage
> your ICT risks! We are the experts you need! The trusted partners you
> deserve!Call: +1-888-587-1150 (Canada) +254-20-267-0743 (Kenya)?or
> info at aganoconsulting.comLicensed by Communications Commission of Kenya
> (CCK)?----------------------------------------------------------------------------------------------"The
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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,
> share knowledge, don't flame or abuse or personalize, respect privacy, do
> not spam, do not market your wares or qualifications.
>
>
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke
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>
> Unsubscribe or change your options at
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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,
> share knowledge, don't flame or abuse or personalize, respect privacy, do
> not spam, do not market your wares or qualifications.
>
>
>
>
> --
> Best regards.
>
> Patience is what you admire in the driver behind you, but not in the one
> ahead.
>
> _______________________________________________
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>
> Unsubscribe or change your options at
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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,
> share knowledge, don't flame or abuse or personalize, respect privacy, do
> not spam, do not market your wares or qualifications.
>
>
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