• About Us
  • Archives
  • SWG Registration
Samrack Media
Mahiga Homes
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events
No Result
View All Result
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events
No Result
View All Result
Samrack Media
No Result
View All Result

Regulators are worried that M-Pesa’s success could disrupt the economy

samrack by samrack
January 3, 2017
in Africa, Diaspora, Kenya, Kenya Diaspora News, News, People, U.S Diaspora
A A
0
Regulators are worried that M-Pesa’s success could disrupt the economy
Share this
FacebookTwitterPinterestEmailWhatsAppLinkedIn

Regulators are worried that M-Pesa’s success could disrupt the economy

When mobile money service M-Pesa launched in 2007, consumers and industry players in Kenya couldn’t have thought it would become so ubiquitous and entrenched in the lives of millions of Kenyans like it is today.

Because mobile money has grown to become such a phenomenon, Kenyan treasury officials, while acknowledging its important role in the economy, think the service should be regarded as a “plausible fiscal risk” to the East African country.

The officials think this, according to a QZ report, because of mobile money’s growing inter-linkages with different sectors of the economy.

M-Pesa

 (QZ)

No less than 25 million Kenyan’s use M-Pesa and, in 2015 alone, they transacted $28 billion. This is equivalent to about 44% of Kenya’s GDP which stands at $63.4 billion.

In 2016, the Safaricom-owned mobile money service had transacted $25 billion within the first three-quarters on the year. Globally, it is the mobile money leader as far as regular users and transactions are concerned.

All these metrics make it easy to understand the Kenyan government’s apprehension. In a recently released budget report, it said, “The financial and other institutions linked to this system would be susceptible possibly amounting to the value transacted through the channel, were this risk to materialise.”

ALSO READ: Banks are taking the mobile money fight to M-Pesa

Potential consequences such as loss of deposits, loss of potential state revenue and damage to market confidence would make for a very big headache for the government who will have to compensate consumers for such losses.

For Safaricom, it doesn’t want to slow down the growth of M-Pesa. “We continuously work with the Central Bank of Kenya and other regulators to test and review the systems put in place and to ensure they are of the highest global standards,” says Steve Chege, Corporate Affairs Director at Safaricom.

A customer conducts a mobile money transfer, known as M-Pesa, inside the Safaricom mobile phone care centre in the central business district of Kenya's capital Nairobi July 15, 2013. Picture taken July 15. REUTERS/Thomas MukoyaplayA customer conducts a mobile money transfer, known as M-Pesa, inside the Safaricom mobile phone care centre in the central business district of Kenya’s capital Nairobi July 15, 2013. Picture taken July 15. REUTERS/Thomas Mukoya 

Mobile money operators in Kenya have probably anticipated the government fear and have further implemented policies to manage operational risk, safeguard users’ funds, and plan for business continuity, according to the QZ report.

“As someone who integrates with M-Pesa, the bank systems as well as with Visa and MasterCard, my general feeling is that M-Pesa is extremely reliable,” says Agosta Liko, CEO at PesaPal, an online and mobile payments aggregator.

There is no definite direction as regards the  governments fear that an M-Pesa hack or compromise could hurt the entire Kenyan economy. Pulse Tech will keep you updated.

Source:http://pulse.ng/

Tags: Banks are taking the mobile money fight to M-Pesahttp://pulse.ng/tech/in-kenya-regulators-are-worried-that-m-pesas-success-could-disrupt-the-economy-id5983972.htmlRegulators are worried that M-Pesa's success could disrupt the economy
Previous Post

Every parent’s dream:Double Kudos to Kubai,Mwangi and Midenyo from Lowell High as they land big scholarships

Next Post

Events that will shape Kenya in 2017

Related Posts

DP Ruto picks Rigathi Gachagua as his running mate
Kenya

DP Ruto picks Rigathi Gachagua as his running mate

May 15, 2022
Muteshi Land Grabbing Case Haunts Ruto
Business

Muteshi Land Grabbing Case Haunts Ruto

May 13, 2022
Boyfriend of Missing US-based Kenyan Woman Considered a ‘Person of Interest’ in Her Disappearance
Diaspora

Boyfriend of Missing US-based Kenyan Woman Considered a ‘Person of Interest’ in Her Disappearance

May 13, 2022
Five Reasons Why Real Estate Increases in Value
Business

Five Reasons Why Real Estate Increases in Value

May 13, 2022
Kenya:9,484 children were defiled last year— Health ministry
Health

Kenya:9,484 children were defiled last year— Health ministry

May 13, 2022
Standoff at JKIA After Family Refuses to Pick Body of Kin Who Died in Saudi Arabia
Diaspora

Standoff at JKIA After Family Refuses to Pick Body of Kin Who Died in Saudi Arabia

May 12, 2022
Next Post
Events that will shape Kenya in 2017

Events that will shape Kenya in 2017

Please login to join discussion
Job Openings Below is a list of current job openings at Northeast Clinical Services, Inc.. Please click on an opening in the list to view details and apply. Job Openings Below is a list of current job openings at Northeast Clinical Services, Inc.. Please click on an opening in the list to view details and apply. Job Openings Below is a list of current job openings at Northeast Clinical Services, Inc.. Please click on an opening in the list to view details and apply.
ADVERTISEMENT
ADVERTISEMENT

Latest News

DP Ruto picks Rigathi Gachagua as his running mate

Muteshi Land Grabbing Case Haunts Ruto

Boyfriend of Missing US-based Kenyan Woman Considered a ‘Person of Interest’ in Her Disappearance

Five Reasons Why Real Estate Increases in Value

Kenya:9,484 children were defiled last year— Health ministry

Standoff at JKIA After Family Refuses to Pick Body of Kin Who Died in Saudi Arabia

Kenyan Nurse Wins Sh29 Million Global Nursing Award in Dubai

Russia Questions US-Funded Biolab in Kenya

GOVERNOR MUTUA’S BIG BLOW AS TRIBUNAL STOPS HIM FROM EXITING AZIMIO LA UMOJA ONE KENYA COALITION!!

Canada Issues Travel Advisory to Its Citizens in Kenya

We are grateful for your monthly or one-off donations To Samrack Media: Cash App No: 781-888-8770 $SAMRACK001

Money

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency

by samrack
November 19, 2021
0

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency This week sees the launch of a new initiative to equip...

A simple guide to Government Bonds investing in Kenya

A simple guide to Government Bonds investing in Kenya

by samrack
September 17, 2021
0

A simple guide to Government Bonds investing in Kenya A treasury bond (T-bond) is a medium term to long term...

Politics

GOVERNOR MUTUA’S BIG BLOW AS TRIBUNAL STOPS HIM FROM EXITING AZIMIO LA UMOJA ONE KENYA COALITION!!

GOVERNOR MUTUA’S BIG BLOW AS TRIBUNAL STOPS HIM FROM EXITING AZIMIO LA UMOJA ONE KENYA COALITION!!

by samrack
May 11, 2022
0

GOVERNOR MUTUA'S BIG BLOW AS TRIBUNAL STOPS HIM FROM EXITING AZIMIO LA UMOJA ONE KENYA COALITION!!   Governor Alfred Mutua’s...

You are free to use Nairobi expressway from next Saturday – Uhuru

You are free to use Nairobi expressway from next Saturday – Uhuru

by samrack
May 8, 2022
0

You are free to use Nairobi expressway from next Saturday - Uhuru Other than the ban on photography, skaters, pedestrians,...

  • About Us
  • Archives
  • SWG Registration

© 2021 SAMRACK - Diaspora News & Updates; design by: Samrack.

No Result
View All Result
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events

© 2021 SAMRACK - Diaspora News & Updates; design by: Samrack.

Page generated in 0.783 seconds. Stats plugin by www.blog.ca