Zain to Launch Zap ending MPESA Monopoly

After spoiling for fight with the regulator, including the Central Bank of Kenya, Zain is now set to launch its money transfer service dubbed Zap. The launch is set to end MPESA's monopoly in the mobile telephony money transfer and enhance convergence in service delivery to customers.

MPESA
When Safaricom launched its debut mobile money transfer service a few years ago, many didnot imagine that its growth would be phenomenal. After tailoring its services to banking the unbanked rural population as well as facilitating secure and real time money transfer the business has grown by leaps and bounds and the customer base now stands at over 5Million with substantial daily remittances going through the system.

Zap
After the unsuccessful launch of the Money transfer service, Sokotele, the company went back to the drawing board resulting in the launch of Zap in partnership with Standard Chartered bank and a host of other partners across the east african region.

Banks Jittery
It is indeed evident that the successfull roll out of MPESA money transfer service did send jitters across the banking sector players. Pundits will therefore be waiting to see how this new product that has more services converged including e-banking will be received by banks. As competition hots up, the major beneficiary shall be the customer as more services will be brought closer and closer at relatively lower costs.

Other players
As Zain is rearing to go with the launch of Zap, other players in the mobile telephony industry including Orange and Econet will be keenly watching and hopefully launch other innovative products fashion in the form of MPESA and ZAP.

Business Costs
Against a backdrop of these new products, many players in the mobile telephony and the telecommunication sector have been petitioning the government for reduction in the cost of doing business in Kenya. These issues revolve around poor infrastructure and moreso the road network, increased cases of insecurity and unreliable energy supplies leading to significant costs incurred by these companies. The immediate resolution of the above will go a long way toward spurring investments in Kenya as an East African hub for business and an emerging market in Africa.

Kenya's Vision 2030-a reality or not?

The media has been awash with news and information on the much touted kenya's Vision 2030 that is set to steer Kenya to the Status close to the First World. This vision has been 'dreamt' for us by the shennanigans and thinktanks at the Ministry of Planning and Vision 2030.

Pillars
If you may not be aware of this Vision its pillars as espoused in the details documents is economic political and social facets. I don not wish to delve into the nitty gritty of the same but my concern is the economic pillar in the sea of current economic quackmire and recession necessitated by the Sub Prime Mortgage Crisis in the US.This crisis has led to the collapse of the world financial giants while others are still reeling from its effects as they beg for Government bailouts.

World Economy
Indeed the world economy has been on a decline from the giant USA to the expansive Europe things have not been going well.This crisis to say the least has spread to Africa and Kenya is no exception. As it is said when US coughs Europe catches a cold and Africa shall be bed-ridden. Kenya that is reliant on Tourism and Exports within its struggling economy, will indeed realize reduced business and the uptake of tourist resorts and Villas even during this festive season shall be significantly reduced.

Outsourcing
Within the economic pillar of the Vision 2030 is the Business Process Outsourcing that has been seen to drive the Kenyan economy towards Vision 2030. This is indeed a new exposure for Kenya where companies in Europe and US alongside other developed economies od the world shall be utilizing the cheap services in Kenya alnd other emerging markets through outsourcing.
AS Kenya takes up th outsourcing bug the supply of business from the global economy may be reduced greatly due to economic crisis.

What next?
Although business process outsourcing is celebrated as a new ICT business to drive Kenya forward what next after the global Crisis?.Will Kenya still be the hub of business in East Africa or Will we perish with our Vision?

More Jitters in Banking Industry as MPESA Reigns

More jittersThe MPESA phenomenon ha continued to cause jitters and sleepless nights to many players in the banking industry who may have been lobbying the Finance minister to crack the whip.

Audit
Yesterday Hon Michuki, the Finance Minister joined the fray and in a rather stern statement called for an audit of MPESA by the Central Bank of Kenya on concerns about the safety of users’ money.

Regulations
M-Pesa and Zain’s equivalent, Sokotele-Now Zap Brand have been operating outside Central Bank’s (CBK) regulation unlike other money transfer services pending the passage of a National Payments Systems Bill.

Popularity
The money transfer system, launched in March 2007, has become popular with the unbanked population serving as a deposit account for some, hence causing jitters in the banking industry.

Money laundering
The phone-based electronic money transfer has been viewed as being prone to abuse by money laundering which is an illegal practice. Further concerns of the likely collaspse of the system have been rending the air and those shouting loudest are the banking industry players. Any guess?

Money Transfer
The MPESA daily money transfer service has been growing by the day and currently over 20B have been transferred through the System snce it was launched. Its registered account users now stand at over 4 Million and the number is growing by the day.

Parting shot!
The successful takeup of MPESA service has clearly demonstrated that Kenyans demands easily accessible, secure cash payment services in this fast growing emerging market and the regulators must take heed not to stiffle the growth with unneccessary and ill-advised regulations.