Kenya

Kenya has approximately 25 million mobile subscribers and 10.2 million Internet users. Mobile penetration stands at 63.2 per cent, with the majority using their devices for money transfers and Internet access.


Link to external site : Website for Kenya
Kenya
Wallets
Development Developing
Send or Receive
GDP ($m)
HDI classification Medium
Mobile Connections (m)
Currency KES
Class
CountryISO KE
Sovereignity Country
Territory of - NA -
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Register/Log In
Channel Analysis
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COT Analysis
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Persona Analysis
{"type":"ColumnChart","data":[["Category","Initiatives"],["DB",1],["MB",2],["MM",2],["MT",1],["MW",2],["OP",2]],"options":{"title":"Initiatives ( 10 of 10 )"}}
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Products
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PI Analysis
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Central Bank
Key Regulations

New enabling regulations for Mobile Money in 2014.

Earlier: Undertaken in an absence of legislation governing payment systems, e-money, bank agents,consumer protection, and anti-money laundering and combating the financing of terrorism;

Passage by Parliament in late 2009 of an AML/CFT bill, which applies to both bank and nonbank institutions. Draft AML bill could need extensive records for each txn.

National Payments Systems bill is expected to enter the Parliamentary process in 2010 to cover e-money.

Banks’ Use of Agents. In November 2009, Kenya amended the Banking Act to include provisions on FI use of agents to provide banking services.

No laws dealing with emoney

CBK’s Payment Systems Division has the authority to ask for information from nonbank payment service providers, but it does not have the power to inspect them

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Type of law
Legal System
Mixed legal system of English common law, Islamic law, and customary law; judicial review in High Court
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Law is based on
Approach
Sectors active in Digital Money
Exclusivity
Certainty
Openness
Proportionate?
Allowed Models
DominantModel
E-Money

Current implementations: In case of M-PESA Kenya, the float is held by M-PESA Trust Company Limited in trust accounts with 2 commercial banks that pool client funds. Interest earned on this cannot benefit Safaricom

In the absence of legal framework, the issuing of e-money by a licensed financial institution does not appear to raise any issues with CBK.

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Payment
Agent

The recent move by Central Bank to release the guidelines on agent banking - officially paving way for commercial banks and financial institutions to hire non banking institution as their agents - is expected to drive growth of money transfer business.

As M-PESA is not banking activity, Safaricom free to choose agents on business judgement. Safaricom bears no responsibility for negligence. Agents are not allowed to open accounts on behalf of banks

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Money Transfer
Agents not permitted to exchange foreign currency
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Taxation
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Population m 37.53
Adult % 57.00
Migrants %
Stock Immigrants ('000)
Emigration Rate %
Internal Migrants ('000)
Internal Migration Rate %
Intl Movement Rate %
Urban % 21.00
Female % 50.80
Literate % 85.10
Annual Growth %
Mobile Penetration % 56.52
Banked % 10.00
Access to FS % 10.00
Internet % 8.00
Branches per 100k adults 4.03
ATMs per 100k adults 6.67
POS per 100k adults 0.00
Prepaid % 98.80
Prepaid SIM Registration
2 Compulsory
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MobileUnbanked (m) 19.09
Monthly ARPU
Cards 2010 ('000)
Propensity %
Overall
Population
On Remittance Sent
On Remittance Received
Mobile Unbanked
Migrant %
MP %
Banked %
Development
Can Provide Payments?
Can Market under Brand?
Can issue E-Money?
Can Open Customer Account?
Can Own Customer?
Can do Cash In/Cash Out?
Can offer Domestic Money Transfer?
Can offer International Money Transfer?
Importance for Digital Money
Digital Money Adoption
Registered Wallet Users
Top Wallets
M-Pesa; Zap; yuCash
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Informal Market
Cost To Remit
Key Players

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