[kictanet] KICTANet Digest, Vol 170, Issue 24
Ali Hussein
ali at hussein.me.ke
Wed Apr 13 14:44:32 EAT 2022
Adrian
I'm going to try and see if I can explain a few things for you and others
that may think that Mpesa is some magical thingi and the greatest Houdini
in the financial world. 😅
*1. Adrian:* It might quack like a duck but the holy grail is the ability
to create currency out of thin air via lending. m-pesa is a mobile money
service. In addition, why do they need CBA which became NCBA for m-shwari
(A deposits and loan facility)? Also with KCB and the former for Fuliza(An
overdraft facility)? Lastly, why does #Saf operate under a special license
from the CBK, unlike the rest who have banking sector charters?
*Answer:* Whatever money you have in your Mpesa account is
mirrored accurately in some custodial accounts in a bank (in this case KCB
and NCBA). Mpesa is a bank in as much as the tech powers mobile money and
mobile banking for banks. However, it is NOT A BANK in the traditional
manner therefore it CAN NOT lend money or accept deposits hence the
partnership with NCBA (for Mshwari) and KCB (for KCB Mpesa). Borrowing and
lending are a function of a bank whose regulator in Kenya is the Central
Bank of Kenya. Mpesa on the other hand has a PSP (Payment Service Provider)
<goog_1756310681>License.
<https://www.centralbank.go.ke/wp-content/uploads/2020/06/Payment-Service-Providers-Authorization-checklist.pdf>
from the CBK.
2. Adrian: The surprise is how this moat has been built under the noses of
traditional banks. The unbanked will be now banked and I don't see a reason
for the CBK to refuse such a proposition for financial inclusion and better
visibility of what is commonly phrased as "Kenya's hidden economy".
*Answer: *You are absolutely correct in this observation. Banks across
Africa have been caught napping. The Mobile Money space, however, is
entering dangerous ground from the face of it. Mpesa now has a 99.5% market
share of the market. On the face of it. If you dig deeper, however, you
will find that despite Mpesa's phenomenal success, cash is still king in
Kenya.
<https://www.the-star.co.ke/business/kenya/2019-08-19-cash-payment-still-king-despite-digital-money-growth--survey/>
So
instead of competitors complaining let them go and convert the remaining
customers into Mobile Money users.
3. Developments I have seen today across the continent -
*https://www.businessdailyafrica.com/bd/corporate/companies/south-african-telco-mtn-gets-approval-to-open-a-bank-in-nigeria-3779704
<https://www.businessdailyafrica.com/bd/corporate/companies/south-african-telco-mtn-gets-approval-to-open-a-bank-in-nigeria-3779704>*
*Answer*: True. In Nigeria however, they took the India Model. The Payment
Service Banks are not true banks. They are just glorified, Mobile Money
Operators. :-) See below:-
MTN granted a PSB License by the Central Bank of Nigeria
<https://www.linkedin.com/posts/alihkassim_mpesa-momo-mpesa-activity-6919287890585800704-dpHT?utm_source=linkedin_share&utm_medium=member_desktop_web>
*Ali Hussein*
Fintech | Digital Transformation
Tel: +254 713 601113
Twitter: @AliHKassim
Skype: abu-jomo
LinkedIn: http://ke.linkedin.com/in/alihkassim
<http://ke.linkedin.com/in/alihkassim>
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 Tue, Apr 12, 2022 at 11:14 PM Adrian Teri <adriateri at gmail.com> wrote:
> Good day Ali,
>
> Surprised you haven't watched this piece by #KTNNews.
>
> *https://youtu.be/5nG2Dq_GuFE <https://youtu.be/5nG2Dq_GuFE>*
>
> It might quack like a duck but the holy grail is the ability to create
> currency out of thin air via lending. m-pesa is a mobile money service. In
> addition, why do they need CBA which became NCBA for m-shwari(A deposits
> and loan facility)? Also with KCB and the former for Fuliza(An overdraft
> facility)? Lastly, why does #Saf operate under a special licence from the
> CBK unlike the rest who have banking sector charters?
>
> The surprise is how this moat has been built under the noses of
> traditional banks. The unbanked will be now banked and I don't see a reason
> for the CBK to refuse such a proposition for financial inclusion and better
> visibility to what is commonly phrased as "Kenya's hidden economy".
>
> Developments I have seen today across the continent - *https://www.businessdailyafrica.com/bd/corporate/companies/south-african-telco-mtn-gets-approval-to-open-a-bank-in-nigeria-3779704
> <https://www.businessdailyafrica.com/bd/corporate/companies/south-african-telco-mtn-gets-approval-to-open-a-bank-in-nigeria-3779704>*
>
> I have been saying the following 3 things for some time though in shorter
> prose and pple don't seem to get them*. *Each can span a hearty
> afternoon's conversation ...
>
> *"Gov'ts, especially federal/national ones, don't need taxes to fund
> spending. In fact, spending comes first then taxes are coerced and
> collected later! Paper notes are burnt and coins restamped!"*
>
>
> * &&*
>
> *"Banks don't lend deposits, It's reserves! *They need them to balance
> their books & comply with the law! The Money Multiplier myth is moot as
> loans create deposits.The conversation delves much deeper but The sole &
> meaningful issuer of currency is the gov't and its designated
> agents(Central Banks) who create money when they spend. They are a literal
> monopoly of a nation's currency!*"*
>
> * &&*
>
> *"The gov't is neither a private company, household nor an individual.
> Stop dumbing down economic discussions with such analogies/examples!"*
>
>
> Regards,
> Adrian Teri
>
>
> On Tue, 12 Apr 2022 at 15:59, <kictanet-request at lists.kictanet.or.ke>
> wrote:
>
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>> Today's Topics:
>>
>> 1. Re: KICTANet Digest, Vol 170, Issue 17 (Ali Hussein)
>>
>>
>>
>> ---------- Forwarded message ----------
>> From: Ali Hussein <ali at hussein.me.ke>
>> To: "Kenya's premier ICT Policy engagement platform" <
>> kictanet at lists.kictanet.or.ke>
>> Cc: Adrian Teri <adriateri at gmail.com>
>> Bcc:
>> Date: Tue, 12 Apr 2022 15:57:34 +0300
>> Subject: Re: [kictanet] KICTANet Digest, Vol 170, Issue 17
>> Adrian
>>
>> Just curious about your statement below:-
>>
>> *"...but It's apparent even from MJ's interview with #KTNNews that m-pesa
>> is seeking to transition to be a fully-fledged bank."* end quote.
>>
>> Could you kindly give us some more information on this? Where did you
>> get this idea from? And if you have it, could you share MJ's clip on this
>> particular subject?
>>
>> My understanding about banking licensing is that you don't start
>> collecting customer information before you are authorized to do so.
>> Generally, prudential guidelines are very strict on this.
>>
>> On a light note - Mpesa doesn't need a banking license. It's already a
>> bank! whether they admit it or not. There is an English saying that goes -
>> If it walks like a duck and quacks like a duck, then it is likely that
>> it is a duck! 😅
>>
>>
>> *Ali Hussein*
>>
>> Fintech | Digital Transformation
>>
>>
>> Tel: +254 713 601113
>>
>> Twitter: @AliHKassim
>>
>> Skype: abu-jomo
>>
>> LinkedIn: http://ke.linkedin.com/in/alihkassim
>> <http://ke.linkedin.com/in/alihkassim>
>>
>>
>>
>>
>> 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 Tue, Apr 12, 2022 at 3:29 PM Adrian Teri via KICTANet <
>> kictanet at lists.kictanet.or.ke> wrote:
>>
>>> Seems like #Saf suffers from the same ailments like GOK in communicating
>>> effectively? Or were they taking advantage of the situation as citizens
>>> fear gov't? The Chief of Risk Management & Security at #Saf points to
>>> enhancing security but It's apparent even from MJ's interview with #KTNNews
>>> that m-pesa is seeking to transition to be a fully fledged bank.
>>>
>>>
>>> https://www.businessdailyafrica.com/bd/videos/sim-card-registration-why-safaricom-is-taking-your-photos-3778858
>>>
>>> Regards,
>>> Adrian Teri
>>>
>>>
>>> ---------- Forwarded message ----------
>>>> From: Adrian Teri <adriateri at gmail.com>
>>>> To: "Kenya's premier ICT Policy engagement platform" <
>>>> kictanet at lists.kictanet.or.ke>
>>>> Cc:
>>>> Bcc:
>>>> Date: Sun, 10 Apr 2022 13:07:04 +0300
>>>> Subject: Re: [kictanet] KICTANet Digest, Vol 170, Issue 11
>>>> Good day all,
>>>>
>>>> There is something remiss and I see it unravelling rather quickly and
>>>> badly. The CA is a gov't commission, essentially a creature of GoK. What's
>>>> the purpose of Huduma namba while one still pays a facilitation fee of
>>>> 1,050/= for numerous services in ecitizen only for them to collect the same
>>>> data they did for the mass registration of huduma namba(fingerprints, photo
>>>> and I even think an e signature was part of it too)? A Déjà vu to the
>>>> Huduma Namba exercise where the gov't was simply unable to communicate that
>>>> were upgrading our IDs from biographic to biometrics?
>>>>
>>>> Why waste productive capacity and man hours to duplicate data multiple
>>>> times? Are your fingerprints & birth certificate changing? And even in
>>>> aspects that do like your area of residence, contact details, marital
>>>> status, assets etc. if there are 2 or more institutions requiring such info
>>>> will you continue to trudge across all of them to update your details?
>>>>
>>>> I do believe the CA has technical people and in IT we know you can
>>>> design an IDP or SSO-like system where you centralize(Just like the Huduma
>>>> namba's aka "single source of truth") storage and management of your user's
>>>> digital identities. In this analogy it would be a gov't institution/corp
>>>> asserting you are who you claim to be(authentication).
>>>>
>>>> Regards,
>>>> Adrian Teri
>>>>
>>>>
>>>>
>>>> ---------- Forwarded message ----------
>>>>> From: Mwendwa Kivuva <Kivuva at transworldafrica.com>
>>>>> To: "Kenya's premier ICT Policy engagement platform" <
>>>>> kictanet at lists.kictanet.or.ke>
>>>>> Cc:
>>>>> Bcc:
>>>>> Date: Fri, 8 Apr 2022 21:07:03 +0300
>>>>> Subject: Re: [kictanet] SIM CARD REGISTRATION & DATA PROTECTION ACT,
>>>>> 2019
>>>>> On Fri, 8 Apr 2022, 19:20 Mutindi Muema via KICTANet, <
>>>>> kictanet at lists.kictanet.or.ke> wrote:
>>>>>
>>>>>> Gobsmaked in deed 💯
>>>>>>
>>>>>> The CA has finally stated today that kica SIM registration regs does
>>>>>> not require photo of subscriber to be taken
>>>>>>
>>>>>> Full interview on Youtube here https://youtu.be/-SpW2rFhYxQ
>>>>>>
>>>>>
>>>>>
>>>>> Meaning then if you ever registered, you will not need to re-register.
>>>>> Because photograph was the only missing link that was never taken in
>>>>> previous initial registration
>>>>>
>>>>>
>>>>>
>>>>> ---------- Forwarded message ----------
>>>>> From: Kathy Mwai <kathymwai at gmail.com>
>>>>> To: "Kenya's premier ICT Policy engagement platform" <
>>>>> kictanet at lists.kictanet.or.ke>
>>>>> Cc:
>>>>> Bcc:
>>>>> Date: Fri, 8 Apr 2022 21:47:46 +0300
>>>>> Subject: Re: [kictanet] SIM CARD REGISTRATION & DATA PROTECTION ACT,
>>>>> 2019
>>>>> @Mwendwa, apparently there's an electronic signature as well. I called
>>>>> Safaricom earlier this is what they told me: They will scan the ID, take a
>>>>> passport photo, and electronic signature 🤔
>>>>>
>>>>> On Fri, 8 Apr 2022 at 21:08, Mwendwa Kivuva via KICTANet <
>>>>> kictanet at lists.kictanet.or.ke> wrote:
>>>>>
>>>>>> On Fri, 8 Apr 2022, 19:20 Mutindi Muema via KICTANet, <
>>>>>> kictanet at lists.kictanet.or.ke> wrote:
>>>>>>
>>>>>>> Gobsmaked in deed 💯
>>>>>>>
>>>>>>> The CA has finally stated today that kica SIM registration regs does
>>>>>>> not require photo of subscriber to be taken
>>>>>>>
>>>>>>> Full interview on Youtube here https://youtu.be/-SpW2rFhYxQ
>>>>>>>
>>>>>>
>>>>>>
>>>>>> Meaning then if you ever registered, you will not need to
>>>>>> re-register. Because photograph was the only missing link that was never
>>>>>> taken in previous initial registration
>>>>>> _______________________________________________
>>>>>> KICTANet mailing list
>>>>>> KICTANet at lists.kictanet.or.ke
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>>>>>>
>>>>>> Unsubscribe or change your options at
>>>>>> https://lists.kictanet.or.ke/mailman/options/kictanet/kathymwai%40gmail.com
>>>>>>
>>>>>>
>>>>>> KICTANet is a multi-stakeholder Think Tank for people and
>>>>>> institutions interested and involved in ICT policy and regulation. KICTANet
>>>>>> is a catalyst for reform in the Information and Communication Technology
>>>>>> sector. Its work is guided by four pillars of Policy Advocacy, Capacity
>>>>>> Building, Research, and Stakeholder Engagement.
>>>>>>
>>>>>> 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 - The Power of Communities, is Kenya's premier ICT policy
>>>>>> engagement platform.
>>>>>>
>>>>>
>>>>>
>>>>> --
>>>>> *Dream and Your Dreams Will Fall Short <kathymwai at gmail.com>...*
>>>>>
>>>>> _______________________________________________
>>>>> KICTANet mailing list
>>>>> KICTANet at lists.kictanet.or.ke
>>>>> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>>>>>
>>>>
>>>>
>>>> “The Communications Authority did not order the telecommunications
>>>>> companies to register all SIM card holders afresh,” Chiloba exclusively
>>>>> told *The Standard.*
>>>>>
>>>>>
>>>>> *Chiloba said the telecommunications companies that asked all Kenyans
>>>>> to re-register their lines, were “overzealous”, saying: “That’s not what we
>>>>> asked them to do.”*
>>>>>
>>>>>
>>>>> *The Director-General says the mobile service providers opted for a
>>>>> knee-jerk reaction after CA demanded that all the service providers must
>>>>> provide updated lists of all their registered customers by April 15, 2022.*
>>>>>
>>>>> On Sat, Apr 9, 2022 at 12:19 AM Gachungi, Lydia via KICTANet <
>>>>> kictanet at lists.kictanet.or.ke> wrote:
>>>>>
>>>>>> Good people, so what is the current position?. Asking from Addis and
>>>>>> wondering since my sim card was already registered and when I dial *106# it
>>>>>> verifies I am registered, do I need to re-register?
>>>>>>
>>>>>>
>>>>>>
>>>>>> Kind regards
>>>>>>
>>>>>>
>>>>>>
>>>>>> Lydia
>>>>>>
>>>>>>
>>>>>>
>>>>>> *From:* KICTANet <kictanet-bounces+l.gachungi=
>>>>>> unesco.org at lists.kictanet.or.ke> *On Behalf Of *Mwendwa Kivuva via
>>>>>> KICTANet
>>>>>> *Sent:* 08 April 2022 21:07
>>>>>> *To:* Gachungi, Lydia <l.gachungi at unesco.org>
>>>>>> *Cc:* Mwendwa Kivuva <Kivuva at transworldafrica.com>
>>>>>> *Subject:* Re: [kictanet] SIM CARD REGISTRATION & DATA PROTECTION
>>>>>> ACT, 2019
>>>>>>
>>>>>>
>>>>>>
>>>>>> CAUTION: This email is external from UNESCO. Please be vigilant on
>>>>>> its sender and content. ATTENTION : Cet e-mail est externe à
>>>>>> l'UNESCO. Soyez vigilant sur son expéditeur et contenu.
>>>>>>
>>>>>>
>>>>>>
>>>>>> On Fri, 8 Apr 2022, 19:20 Mutindi Muema via KICTANet, <
>>>>>> kictanet at lists.kictanet.or.ke> wrote:
>>>>>>
>>>>>> Gobsmaked in deed 💯
>>>>>>
>>>>>>
>>>>>>
>>>>>> The CA has finally stated today that kica SIM registration regs does
>>>>>> not require photo of subscriber to be taken
>>>>>>
>>>>>>
>>>>>>
>>>>>> Full interview on Youtube here https://youtu.be/-SpW2rFhYxQ
>>>>>>
>>>>>>
>>>>>>
>>>>>>
>>>>>>
>>>>>> Meaning then if you ever registered, you will not need to
>>>>>> re-register. Because photograph was the only missing link that was never
>>>>>> taken in previous initial registration
>>>>>> _______________________________________________
>>>>>> KICTANet mailing list
>>>>>> KICTANet at lists.kictanet.or.ke
>>>>>> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>>>>>> Twitter: http://twitter.com/kictanet
>>>>>> Facebook: https://www.facebook.com/KICTANet/
>>>>>>
>>>>>> Unsubscribe or change your options at
>>>>>> https://lists.kictanet.or.ke/mailman/options/kictanet/ggithaiga%40kictanet.or.ke
>>>>>>
>>>>>>
>>>>>> KICTANet is a multi-stakeholder Think Tank for people and
>>>>>> institutions interested and involved in ICT policy and regulation. KICTANet
>>>>>> is a catalyst for reform in the Information and Communication Technology
>>>>>> sector. Its work is guided by four pillars of Policy Advocacy, Capacity
>>>>>> Building, Research, and Stakeholder Engagement.
>>>>>>
>>>>>> 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 - The Power of Communities, is Kenya's premier ICT policy
>>>>>> engagement platform.
>>>>>>
>>>>>
>>>>>
>>>>> --
>>>>> Grace Githaiga
>>>>> KICTANet Convenor
>>>>>
>>>>> KICTANet portals
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>>>>> <https://twitter.com/kictanet> | LinkedIn
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>>>>> _______________________________________________
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>>>>>
>>>>>
>>>>> KICTANet is a multi-stakeholder Think Tank for people and institutions
>>>>> interested and involved in ICT policy and regulation. KICTANet is a
>>>>> catalyst for reform in the Information and Communication Technology sector.
>>>>> Its work is guided by four pillars of Policy Advocacy, Capacity Building,
>>>>> Research, and Stakeholder Engagement.
>>>>>
>>>>> 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 - The Power of Communities, is Kenya's premier ICT policy
>>>>> engagement platform.
>>>>>
>>>>
>>>>
>>>> --
>>>> Josiah Mugambi
>>>> _______________________________________________
>>>> KICTANet mailing list
>>>> KICTANet at lists.kictanet.or.ke
>>>> https://lists.kictanet.or.ke/mailman/listinfo/kictanet
>>>>
>>> _______________________________________________
>>> KICTANet mailing list
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>>>
>>> Unsubscribe or change your options at
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>>>
>>>
>>> KICTANet is a multi-stakeholder Think Tank for people and institutions
>>> interested and involved in ICT policy and regulation. KICTANet is a
>>> catalyst for reform in the Information and Communication Technology sector.
>>> Its work is guided by four pillars of Policy Advocacy, Capacity Building,
>>> Research, and Stakeholder Engagement.
>>>
>>> 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 - The Power of Communities, is Kenya's premier ICT policy
>>> engagement platform.
>>>
>> _______________________________________________
>> KICTANet mailing list
>> KICTANet at lists.kictanet.or.ke
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>
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