<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"><head><meta http-equiv=Content-Type content="text/html; charset=utf-8"><meta name=Generator content="Microsoft Word 12 (filtered medium)"><!--[if !mso]><style>v\:* {behavior:url(#default#VML);}
o\:* {behavior:url(#default#VML);}
w\:* {behavior:url(#default#VML);}
.shape {behavior:url(#default#VML);}
</style><![endif]--><style><!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
@font-face
{font-family:Times;
panose-1:2 2 6 3 5 4 5 2 3 4;}
@font-face
{font-family:"Book Antiqua";
panose-1:2 4 6 2 5 3 5 3 3 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:12.0pt;
font-family:"Times New Roman","serif";}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
p.MsoListParagraph, li.MsoListParagraph, div.MsoListParagraph
{mso-style-priority:34;
mso-margin-top-alt:auto;
margin-right:0in;
mso-margin-bottom-alt:auto;
margin-left:0in;
font-size:12.0pt;
font-family:"Times New Roman","serif";}
span.apple-style-span
{mso-style-name:apple-style-span;}
span.EmailStyle19
{mso-style-type:personal-reply;
font-family:"Calibri","sans-serif";
color:#1F497D;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Hi Yawe, you could try twitter @safaricomltd, they seem to respond fairly quickly on that medium<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Edwin<o:p></o:p></span></p></div><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> kictanet-bounces+eonchari=lynxbits.com@lists.kictanet.or.ke [mailto:kictanet-bounces+eonchari=lynxbits.com@lists.kictanet.or.ke] <b>On Behalf Of </b>robert yawe<br><b>Sent:</b> Monday, July 04, 2011 9:12 AM<br><b>To:</b> Edwin<br><b>Cc:</b> KICTAnet ICT Policy Discussions<br><b>Subject:</b> [kictanet] Fw: M-PESA irregularities<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><div><div><div><p class=MsoNormal><span style='color:black'>Hi,<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='color:black'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Times","serif";color:black'>I am </span><span style='font-size:13.5pt;font-family:"Times","serif";color:black'>writing</span><span style='font-family:"Times","serif";color:black'> this post with a heavy heart as it will likely reverse gains that have been made in the ecommerce and ebanking/mbanking environment.</span><span style='font-size:13.5pt;color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;color:black'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;font-family:"Times","serif";color:black'>A client of mine, who shall remain unnamed for now in typical Kenya fashion, runs a site that accepts payments using the mpesa paybill system. Due to the close similarity in various paybill number there has been a tendency for people to send money to the account erroneously.</span><span style='font-size:13.5pt;color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;color:black'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;font-family:"Times","serif";color:black'>As the errors have grown over time the client has had to come up with a way to manage the reversals so us to reduce the impact on their operations. Last week Safaricom accessed the paybill number's account and initiated reversals without notifying them. </span><span style='font-size:13.5pt;color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;color:black'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;font-family:"Times","serif";color:black'>How sure is Safaricom that the person who indicated that they had sent the money to the wrong number had not already consumed services? As the post master general in waiting I am concerned that such action would have negative effect on ecommerce as reversal of a transaction based on the request of one party will definitely harm the other.</span><span style='font-size:13.5pt;color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;color:black'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;font-family:"Times","serif";color:black'>The reversed transaction still incurs the owner of the paybill number a cost that is not reversed, this issue was previously raised with the former MD of Safaricom Mr. Michael Joseph who instructed one of the managers to look into and resolve. It has been over 2 years and the issue is yet to be concluded.</span><span style='font-size:13.5pt;color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;color:black'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;font-family:"Times","serif";color:black'>This action also indicates the issue of Safaricom mistreating SME organisations, if the error was made with the KPLC or Co-Op Bank accounts would the staff have the audacity to make direct reversals on the system? </span><span style='font-size:13.5pt;color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;color:black'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;font-family:"Times","serif";color:black'>I believe the term for such action is blatant impunity that can only be practised by a monopolistic player in an industry. </span><span style='font-size:13.5pt;color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;color:black'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;font-family:"Times","serif";color:black'>With a heavy heart I send this post hoping that it will act as a wake up call both to Safaricom and the regulators (CCK & Central Bank) that we need better control and monitoring of the money transfer market otherwise we stand to scare the public which would result in its slow down.</span><span style='font-size:13.5pt;color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;color:black'><o:p> </o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Times","serif";color:black'>Regards </span><span style='font-size:13.5pt;color:black'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:13.5pt;color:black'><o:p> </o:p></span></p></div><p class=MsoNormal style='margin-bottom:12.0pt'><span class=apple-style-span><span style='font-family:"Times","serif";color:black'>Robert Yawe</span></span><span style='font-size:13.5pt;color:black'><br></span><span class=apple-style-span><span style='font-family:"Times","serif";color:black'>KAY System Technologies Ltd</span></span><span style='font-size:13.5pt;color:black'><br></span><span class=apple-style-span><span style='font-family:"Times","serif";color:black'>Phoenix House, 6th Floor</span></span><span style='font-size:13.5pt;color:black'><br></span><span class=apple-style-span><span style='font-family:"Times","serif";color:black'>P O Box 55806 Nairobi, 00200</span></span><span style='font-size:13.5pt;color:black'><br></span><span class=apple-style-span><span style='font-family:"Times","serif";color:black'>Kenya</span></span><span style='color:black'><o:p></o:p></span></p><div><p class=MsoNormal><span style='color:black'>Tel: +254722511225, +254202010696<o:p></o:p></span></p></div></div><div><p class=MsoNormal><span style='color:black'><o:p> </o:p></span></p></div><div><div><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><o:p> </o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:navy'> </span><span style='color:black'><o:p></o:p></span></p><div><div class=MsoNormal align=center style='text-align:center'><span style='color:black'><hr size=2 width="100%" align=center></span></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif";color:black'> Eugene Lidede (Synergy) [mailto: eugene@synergy.co.ke ] <br><b>Sent:</b> 04 July 2011 09:05<br><b>To:</b> robertyawe@synergy.co.ke<br><b>Subject:</b> M-PESA irregularities</span><span style='color:black'><o:p></o:p></span></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black'> </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black'>Robert,</span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black'> </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black'>As we spoke; </span><span style='color:black'><o:p></o:p></span></p><p class=MsoListParagraph style='margin-left:.75in'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black'>i)</span><span style='font-size:7.0pt;color:black'> </span><span style='color:black'>Safaricom is now directly manipulating transactions in our M-PESA account without our consent or any manner of reference to us. Is this proper? (see red circle in picture below)<o:p></o:p></span></p><p class=MsoListParagraph style='margin-left:.75in'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black'>ii)</span><span style='font-size:7.0pt;color:black'> </span><span style='color:black'>They never refund monies deducted from us resulting from the said reversals despite the fact that we are not party to initiating the “wrong payments” (see blue circle). These are wrong payments intended for co-op bank’s 400200 but instead sent to our 400100.<o:p></o:p></span></p><p class=MsoListParagraph style='margin-left:.75in'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black'>iii)</span><span style='font-size:7.0pt;color:black'> </span><span style='color:black'>This issue has been outstanding since October last year during Michael Josephs days. Safaricom has refused to sort it out. Several emails to their M-PESA department regarding this issue have gone unanswered even those specifically addressed to the referenced Caroline lady.<o:p></o:p></span></p><p class=MsoListParagraph style='margin-left:.75in'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black'>iv)</span><span style='font-size:7.0pt;color:black'> </span><span style='color:black'>With the deteriorating relationship, it might be time considered ZAP and Orange money seriously as a payment platform for our retail subscribers<o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black'> </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black'> </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black'> </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black'><img width=476 height=972 id="Picture_x005f_x0020_3" src="cid:image001.jpg@01CC3A2E.A3AD9330"></span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black'> </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'> </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Regards</span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'> </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'> </span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:15.0pt'><b><span style='font-size:11.0pt;font-family:"Book Antiqua","serif";color:black'>Eugene Lidede | </span></b><span style='font-family:"Book Antiqua","serif";color:black'>Chief Technology Officer | Synergy Systems Limited</span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:15.0pt'><span style='font-size:11.0pt;font-family:"Book Antiqua","serif";color:black'>6th Floor, Phoenix House, Kenyatta Ave. | Cell: +254 721 289497/476367 | Tel: +254 20 2113163</span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:15.0pt'><span style='font-size:11.0pt;font-family:"Book Antiqua","serif";color:black'><a href="http://live.mystocks.co.ke" target="_blank">live.mystocks.co.ke</a> | <a href="http://www.propertykenya.com" target="_blank">www.propertykenya.com</a> | <a href="http://www.mystocks.co.ke" target="_blank">www.mystocks.co.ke</a></span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:15.0pt'><b><span style='font-size:11.0pt;font-family:"Book Antiqua","serif";color:#E36C0A'>Outstanding Online Investment Content Provider 2009</span></b><span style='font-family:"Book Antiqua","serif";color:black'> – </span><span style='font-size:10.0pt;font-family:"Book Antiqua","serif";color:black'>Computer Society of Kenya</span><span style='color:black'><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:black'> </span><span style='color:black'><o:p></o:p></span></p></div></div></div></div></div></div></body></html>