<html><head><style type="text/css"><!-- DIV {margin:0px;} --></style></head><body><div style="font-family:'times new roman', 'new york', times, serif;font-size:12pt;color:#000000;"><div style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "></div><div style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><div style="color: rgb(0, 0, 0); font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; ">Hi,</div><div style="color: rgb(0, 0, 0); font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><br></div><div style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif" size="3">I am </font><font class="Apple-style-span" face="'times new roman', 'new york', times, serif">writing</font><font class="Apple-style-span" face="'times new roman', 'new york',
times, serif" size="3"> this post with a heavy heart as it will likely reverse gains that have been made in the ecommerce and ebanking/mbanking environment.</font></div><div style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif"><br></font></div><div style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif">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.<br></font></div><div style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif" size="3"><br></font></div><div
style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif">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. </font></div><div style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif"><br></font></div><div style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif">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.</font></div><div style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif"><br></font></div><div style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif">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.</font></div><div style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif"><br></font></div><div style="font-family:
'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif">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? </font></div><div style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif"><br></font></div><div style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif">I believe the term for such action is blatant impunity that can only be practised by a monopolistic player in an industry. </font></div><div style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york',
times, serif"><br></font></div><div style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif">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.</font></div><div style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif" size="3"><br></font></div><div style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif" size="3">Regards </font></div><div style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york',
times, serif" size="3"><br></font></div><span class="Apple-style-span" style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif" size="3">Robert Yawe</font></span><span class="Apple-style-span" style="font-family: 'Times New Roman'; font-size: medium; "><br></span><span class="Apple-style-span" style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif" size="3">KAY System Technologies Ltd</font></span><span class="Apple-style-span" style="font-family: 'Times New Roman'; font-size: medium; "><br></span><span class="Apple-style-span" style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif" size="3">Phoenix House, 6th Floor</font></span><span class="Apple-style-span" style="font-family: 'Times New Roman';
font-size: medium; "><br></span><span class="Apple-style-span" style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif" size="3">P O Box 55806 Nairobi, 00200</font></span><span class="Apple-style-span" style="font-family: 'Times New Roman'; font-size: medium; "><br></span><span class="Apple-style-span" style="font-family: 'Times New Roman'; font-size: medium; "><font class="Apple-style-span" face="'times new roman', 'new york', times, serif" size="3">Kenya</font></span><span class="Apple-style-span" style="font-family: 'Times New Roman'; font-size: medium; "><br></span><span class="Apple-style-span" style="font-family: 'Times New Roman'; font-size: medium; "><br></span><div style="color: rgb(0, 0, 0); font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; ">Tel: +254722511225, +254202010696</div></div><div style="color: black; font-family: 'times new
roman', 'new york', times, serif; font-size: 12pt; "><br></div><div><div><div><div class="Section1"><p class="MsoNormal"><font class="Apple-style-span" color="#000080" face="Arial" size="2"><br></font></p>
<p class="MsoNormal" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><font size="2" color="navy" face="Arial"><span style="
font-size:10.0pt;font-family:Arial;color:navy;"> </span></font></p>
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<div class="MsoNormal" align="center" style="text-align:center;"><font size="3" face="Times New Roman"><span lang="EN-US" style="font-size:12.0pt;
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<p class="MsoNormal"><b><font size="2" face="Tahoma"><span lang="EN-US" style="font-size:10.0pt;font-family:Tahoma;font-weight:bold;">From:</span></font></b><font size="2" face="Tahoma"><span lang="EN-US" style="font-size:10.0pt;font-family:Tahoma;">
Eugene Lidede (Synergy) [mailto: eugene@synergy.co.ke ]
<br>
<b><span style="font-weight:bold;">Sent:</span></b> 04 July 2011 09:05<br>
<b><span style="font-weight:bold;">To:</span></b> robertyawe@synergy.co.ke<br>
<b><span style="font-weight:bold;">Subject:</span></b> M-PESA irregularities</span></font><font size="3" face="Times New Roman"><span lang="EN-US" style="font-size:12.0pt;font-family:"Times New Roman";"></span></font></p>
</div>
<p class="MsoNormal" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><font size="2" face="Calibri"><span style="font-size:11.0pt;"> </span></font></p>
<p class="MsoNormal" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><font size="2" face="Calibri"><span lang="EN-US" style="
font-size:11.0pt;">Robert,</span></font></p>
<p class="MsoNormal" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><font size="2" face="Calibri"><span lang="EN-US" style="
font-size:11.0pt;"> </span></font></p>
<p class="MsoNormal" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><font size="2" face="Calibri"><span lang="EN-US" style="
font-size:11.0pt;">As we spoke; </span></font></p>
<p class="msolistparagraph" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; margin-left: 54pt; "><font size="2" face="Calibri"><span lang="EN-US" style="font-size:11.0pt;"><span style="">i)<font size="1" face="Times New Roman"><span style="font:7.0pt "Times New Roman";">
</span></font></span></span></font><span lang="EN-US">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)</span></p>
<p class="msolistparagraph" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; margin-left: 54pt; "><font size="2" face="Calibri"><span lang="EN-US" style="font-size:11.0pt;"><span style="">ii)<font size="1" face="Times New Roman"><span style="font:7.0pt "Times New Roman";">
</span></font></span></span></font><span lang="EN-US">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.</span></p>
<p class="msolistparagraph" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; margin-left: 54pt; "><font size="2" face="Calibri"><span lang="EN-US" style="font-size:11.0pt;"><span style="">iii)<font size="1" face="Times New Roman"><span style="font:7.0pt "Times New Roman";">
</span></font></span></span></font><span lang="EN-US">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.</span></p>
<p class="msolistparagraph" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; margin-left: 54pt; "><font size="2" face="Calibri"><span lang="EN-US" style="font-size:11.0pt;"><span style="">iv)<font size="1" face="Times New Roman"><span style="font:7.0pt "Times New Roman";">
</span></font></span></span></font><span lang="EN-US">With the
deteriorating relationship, it might be time we considered PesaPal, ZAP and
Orange money seriously as a payment platform for our
retail subscribers</span></p>
<p class="MsoNormal" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><font size="2" face="Calibri"><span lang="EN-US" style="
font-size:11.0pt;"> </span></font></p>
<p class="MsoNormal" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><font size="2" face="Calibri"><span lang="EN-US" style="
font-size:11.0pt;"> </span></font></p>
<p class="MsoNormal" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><font size="2" face="Calibri"><span lang="EN-US" style="
font-size:11.0pt;"> </span></font></p>
<p class="MsoNormal" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><font size="2" face="Calibri"><span lang="EN-US" style="
font-size:11.0pt;"><img width="476" height="972" id="Picture_x005f_x0020_3" src="cid:1.145554124@web27803.mail.ukl.yahoo.com"></span></font></p>
<p class="MsoNormal" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><font size="2" face="Calibri"><span lang="EN-US" style="
font-size:11.0pt;"> </span></font></p>
<p class="MsoNormal" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><font size="2" color="#1f497d" face="Calibri"><span lang="EN-US" style="font-size:11.0pt;color:#1F497D;"> </span></font></p>
<p class="MsoNormal" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><font size="2" color="#1f497d" face="Calibri"><span lang="EN-US" style="font-size:11.0pt;color:#1F497D;">Regards</span></font></p>
<p class="MsoNormal" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><font size="2" color="#1f497d" face="Calibri"><span lang="EN-US" style="font-size:11.0pt;color:#1F497D;"> </span></font></p>
<p class="MsoNormal" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><font size="2" color="#1f497d" face="Calibri"><span lang="EN-US" style="font-size:11.0pt;color:#1F497D;"> </span></font></p>
<p class="MsoNormal" style="color: black; font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; line-height: 15pt; "><b><font size="2" color="black" face="Book Antiqua"><span lang="EN-US" style="font-size:11.0pt;font-family:"Book Antiqua";color:black;font-weight:bold;">Eugene Lidede | </span></font></b><font color="black" face="Book Antiqua"><span lang="EN-US" style="font-family:"Book Antiqua";color:black;">Chief Technology Officer | Synergy Systems Limited<b><span style="font-weight:bold;"></span></b></span></font></p>
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