The Kenyan government has revealed plans to regulate mobile payments, in a move that would compel service providers such as Safaricom to share their payment systems with competitors.
Proposed by Kenya’s Central Bank (CBK), the draft regulations include a requirement for institutions with mobile money services to open independent subsidiaries for cash remittances.
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The aim of the new legislation is to establish a payment service provider management body, making it easier for customers to transfer cash throughout the country using existing networks.
Providing a forum for shared use of the country’s payment platform, the body will determine rules of engagement, interconnection charges, and transaction liability.
Under the ‘National Payment System Regulations 2013’, it will further enable both domestic and foreign firms to inter-operate via the newly opened system.
Attending the launch of Safaricom’s second Sustainability Report, Stephen Mwaura, head of national payment systems at CBK, expressed confidence that the new regulations will increase the security and efficiency of payments and mobile money services in particular.
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By GlobalDataSpeaking on behalf of the firm, Bob Collymore, Safaricom’s chief executive officer, expressed support for the sharing of mobile money platforms, especially with international providers.
Addressing calls by local banks and mobile operators for Safaricom to open its cross-network operations, the policy is the latest in a wave of regulations set out by the country’s Central Bank, and follows an extension of its control over electronic retail payments announced in October 2013.
Madhur Taneja, chief executive officer of yuMobile, a telecommunications service under global corporation Essar, had previously expressed her company’s willingness to pay Safaricom royalties in exchange for permission to use its mobile money service M-Pesa.
Under telecoms provider Vodafone’s management responsibility since the UK company acquired a 40% stake in 2000, Safaricom boasts over 17m subscribers and sits among the top 10 largest African telecom companies by revenue and subscription base.
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