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

Thu Jul 23 11:59:59 EAT 2015

Many thanks Josiah,

First congratulations for the 5th edition of Pivot East Africa and for
the good work you are doing, just following the discussion on the
Global Entrepreneurship Summit i feel proud of how far the local tech
sector has come and the role communities such as skunkworks of which
you are among the founder members and the i-hub have done.
Back to the discussion your intervention is timely, there is need for
a Consumer Protection act and i am aware COFEK has been working on a
draft bill, they are on this list and we hope they will be able to
provide highlights on the stage at which the bill is in.

Best Regards

On 7/23/15, Josiah Mugambi <jmugambi at gmail.com> wrote:
> Wading in one day late on this particular discussion topic, but for good
> reason.
>
> Yesterday we held the 5th edition of Pivot East <http://www.pivoteast.com>,
> a regional pitching competition for digital startup companies from East
> Africa. Digital entrepreneurs as one might imagine are those that run
> mobile and web based or enabled businesses, and are a core part of the
> internet economy. Not surprisingly, on average, the most accomplished
> companies were in the financial sector. This is a sector where policy tends
> to lag behind innovation (think MPESA, crypto currencies and the burgeoning
> young companies beginning to play in that space across Africa). One key
> question that was asked multiple times by the judges, majority of whom were
> investors, was related to consumer protection and legislation for some of
> these services.
>
> I would say that we don't have a strong enough legal framework the governs
> some of these new frontiers. However, there must be a healthy tension
> between the need to protect consumers from unscrupulous business people
> while encouraging innovative uses of technology. With regards to taxing the
> internet economy, don't we have corporate taxes that apply across the
> board? I don't think it is big enough either especially as many of these
> bigger players are already paying taxes as it stands. On stuff like cloud
> services, we need to be wary of double taxation as many services
> particularly from the US are already taxed.
>
>
>
>
> --
> Josiah Mugambi
>
> On Wed, Jul 22, 2015 at 3:55 PM, fredrick Wahome via Security <
> security at lists.my.co.ke> wrote:
>
>> Unfortunately those in the leadership will just draft something when it
>> deems appropriate time for them without involving the stakeholders n end
>> users.
>>
>> The document will just sit at CA shelves and life  goes on. For now am
>> concentrating on educating users how to be safe.
>> On Jul 22, 2015 11:46 AM, "Grace Mutung'u (Bomu) via Security" <
>> security at lists.my.co.ke> wrote:
>>
>>> 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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>>>>
>>>
>>>
>>>
>>> --
>>> Grace L.N. Mutung'u
>>> Nairobi Kenya
>>> Skype: gracebomu
>>> Twitter: @Bomu
>>>
>>> <http://www.diplointernetgovernance.org/profile/GraceMutungu>
>>>
>>>
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>>
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-- 
Barrack O. Otieno
+254721325277
+254-20-2498789
Skype: barrack.otieno
http://www.otienobarrack.me.ke/