gmeltdown

Mobile Money in Kenya, and East Africa in general has become part and parcel of everyday activities. Often times users of M-Pesa in Kenya are seen complaining about how their mobile money payments (or transfers) did not go through in good time to much their hurry. Sometimes users complain about a complete failure of their attempted transactions. One would think then, "if M-PESA is that unreliable, why not Use alternative mobile money transfer platforms?" The reality is that the alternatives - the likes of Airtel Money, Yucash, Orange Money and Mobikash may not always be better. For instance, the alternatives might imply one driving for a long while looking for an agent to deposit money for the transaction as their agent networks are largely under-developed. Critical minutes of need At a critical moment this evening, I run out of power in my house (still learning to match KPLC pre-payments and usage). So having got used to the convenience of recharging the pre-paid meter acc...

M-PESA is the mobile money transfer platform introduced in Kenya by Safaricom - Kenya's arguably dominant mobile network operator. It is a fact that M-PESA has revolutionized lifestyles of Kenyans in the last three years. To-date there are about 20,000 M-PESA agents in Kenya according to statistics from Safaricom. It is the extensive network of M-PESA outlets that Michael Joseph - former CEO of Safaricom attributes to the phenomenal success of the M-PESA money transfer system (see my notes on ‘ reflections with MJ ’ in October 2010). Although the former CEO's assertion remains arguable, the significance of the agents and their outlets cannot be overstated in analyzing the money transfer system's success. Recently I engaged a couple of M-PESA agents in some discourse to try and understand their contribution to the platform's success. Perhaps it is because of our age old tendency to complain over everything that I caught a few concerns that would qualify to be the ...

Many Kenyans still believe that 'their' Safaricom owns the patents to the M-PESA innovation. Some Kenyans even claim that Safaricom hijacked their idea and developed it into M-PESA - a court case was once reported on this. The reality being that the system  was 'developed' by Sagentia on behalf of Vodafone, it goes without saying that the corresponding intellectual property (IP) does not belong to Safaricom. That is also not to forget that Kenya has enough software development capacity to build such a system on a robust platform. Safaricom is paying patent fees to Vodafone just like any other network operator who will wish to use the money transfer platform. It might help for Michael Joseph to clarify if any benefits accrue to himself or others in Safaricom specifically for accepting to be the test platform for "Vodafone's innovation". Such a clarification should of course address the opportunity cost of a more direct contribution to Kenya's knowl...