Innovative micro-insurance program expands to protect Kenyan farmers from drought

As Drought Sow Fears in Kenyan Fields, Major Expansion of Innovative Micro-insurance Program Gives Farmers New Way to Manage Risks.  

By Dan Muhuni

With Kenyan farmers increasingly fearing massive weather-related losses, UAP Insurance, Syngenta Foundation and mobile operator Safaricom announced today a major expansion of Kilimo Salama, an innovative and affordable crop insurance program that will now cover the expected value of farm harvests, more crops and many more farmers against drought and excess rain.

The new program, called Kilimo Salama Plus, builds on the original Kilimo Salama—Kiswahili for “safe farming”—which was launched last year. It uses a low-cost mobile phone payment and data system that is linked to solar-powered weather stations to issue an insurance policy and rapidly compensate farmers for investments in seeds, fertilizer, and other inputs that are lost to either insufficient or excessive rains.

Kilimo Salama Plus retains this innovative approach while expanding from the initial focus to go beyond just inputs to give farmers the opportunity to insure the value of their harvest. In addition, due to high demand, farmers can now insure a wider array of crops including maize, wheat, beans, and sorghum.

Kilimo Salama Plus is available to farmers in the productive breadbasket regions of Southern Nyanza, covering Oyugis and Homa Bay, Busia and Northern Rift, including Kitale and Eldoret, as well as Embu and Nanyuki.

UAP Insurance Managing Director James Wambugu said that Kilimo Salama Plus had expanded the range of crops under cover due to rising popularity of its affordable and easily-dispensable nature.

“It also follows our drive to simplify insurance and in the process expand access to more farmers,” he explained.

“Agricultural insurance is particularly important in Kenya and elsewhere in Africa today as the extreme weather patterns generated by climate change are introducing greater volatility to food production and food prices,” said Dr. Wilson Songa, Agriculture Secretary of the Minister of Agriculture, during the launch ceremony in Kitale today.

Expounding on the successes of the initial program, Marco Ferroni, Executive Director of the Syngenta Foundation, said, “We have seen 12,000 farmers in Kenya take advantage of the original Kilimo Salama and we should be able to reach 50,000 farmers with Kilimo Salama Plus this year and provide far more insurance options.”

“We have quickly seen this initiative grow from a small pilot program in 2009 to become the largest agricultural insurance program in Africa and the first to use mobile phone technology to speed access and payouts to rural farmers,” he added.

Just as they did with the original program, farmers purchase Kilimo Salama Plus through local agro-dealers, who use a camera phone to scan a special bar code that sends the policy to UAP over Safaricom’s mobile data network. This innovative mobile phone application, which was developed by the Syngenta Foundation, then sends a text (SMS) message to the farmer’s mobile phone confirming the insurance policy.

Payouts are determined by data collected through 30 weather stations in the targeted regions that have been renovated with automated, solar-powered systems capable of broadcasting regular updates on weather conditions and rainfall quantities occurring near individual farms. When data from a particular station, which is transmitted over Safaricom’s 3G data network, indicates that drought or other extreme conditions (including excessive rains) are destined to reduce yields, all farmers registered with that station automatically receive payouts.

The payments are sent directly to a farmer’s mobile phone via Safaricom's popular M-PESA mobile money transfer service. Using M-PESA combined with the automated weather stations allows farmers to quickly collect payouts with virtually no claims process and no need for an agent to visit the farm to confirm losses.

“M-PESA is already a well-established and trusted system for conducting money transfers in rural Kenya and our network has more than enough capacity to provide greater access to the Kilimo Salama Plus program,” said Safaricom CEO Bob Collymore. “It is exciting to see how the rapid uptake of mobile phone technology in Kenya, bolstered by Safaricom’s pioneering investment in M-PESA and a robust data network running on Kenya’s only 3G platform, is being used to deal with the weather uncertainties that are a major cause of food insecurity among some Kenyan families.”

Included in the program is a helpline funded by the Syngenta Foundation that is staffed by agriculture experts from Safaricom offering farmers free advice on how to improve production and protect their investments. Sixteen thousand Kenyan farmers already have used the helpline.

Crop insurance has long been used in developed countries to deal with such weather uncertainties, but its availability in Africa, particularly to smallholder farmers, has been extremely limited. Many areas of Kenya received far less rain during the “short-rain” season that runs from October to December and there are concerns that weather patterns now developing—particularly a cooling of Pacific Ocean waters known as “La Niña”—could curtail precipitation throughout 2011. Kilimo Salama partners expect for some registered farmers in parts of Embu, Nyanza, and Nanyuki to receive payouts for drought-related losses.

Kilimo Salama (“Safe Agriculture”) is a pay-as-you-plant insurance program for Kenyan farmers to insure their farm inputs against drought and excess rain. The program, which is a partnership between Syngenta Foundation for Sustainable Agriculture, UAP Insurance, and Safaricom, uses a low-cost mobile phone payment and data system that is linked to solar powered weather stations to issue insurance policies and rapidly compensate farmers for investments in seeds, fertilizer, and other inputs that are lost due to either insufficient or excessive rains

Safaricom and Spice launch Mobile Radio

 By Dan Muhuni

India’s premier mobile Value Added Services (VAS) Company, Spice, has today announced the launch of one of its flagship services, Mobile Radio, in partnership with leading Kenyan integrated communications company Safaricom. Branded iDJ, the service will make the customer’s favorite music available to him anytime, anywhere.

Thanks to iDJ, Safaricom’s subscribers will be able to save their favorite music tracks in a personalized zone on the network, and access the music irrespective of the device features. “All it takes is a mobile phone and a connection to Safaricom. The iDJ service is not dependant on any special features on the phone since it can be accessed by making a simple voice call from any Safaricom number. It is like having your iPod in your phone, only it has a much wider choice of music”, said Arun Nagar, CEO & Managing Director of Spice VAS Africa Pte Ltd, a subsidiary of Spice Group formed specifically to expand its footprint in Africa.

Speaking on the occasion, Peter Arina, Chief Commercial Officer, Safaricom said, “We are very buoyant about the opportunities in VAS, and see it as a natural progression in the given scenario where voice revenues are under pressure. Spice is a trusted partner with an impressive bouquet of Value Added Services, and we intend to fully leverage this relationship for the benefit of Safaricom’s customers. To enable our subscribers to try this exciting new service, we have kept the subscription cost free for the first three months as a promotional offer.” A unique offering of iDJ is to send personalized song dedications. The service was tested with great success during Valentine’s Day with enthusiastic customers recording their voice messages and sending a song dedication to their loved ones. The iDJ service is available to Safaricom’s over 17 million subscribers by dialing the short code 813 at a browsing fee of KES 1 per minute. There is no subscription fee for the initial three-month trial period.

It is understood that in addition to Kenya, Spice subsidiaries are operational in West African markets of Nigeria and Ghana, as well as neighboring Tanzania where it operates a Caller Ring back Tone (CRBT) platform in partnership with Airtel. “Spice’s business model is to provide an end-to-end Managed Service, wherein we invest in the Capex and manage the complete service for the operator, including the provisioning of local and international content. This model has enabled us to maximize operator revenues by driving service penetration of 29% of the subscriber base within one year at our CRBT installation in Tanzania”, explained Nagar. Commenting on the company’s future plans, Nagar said that the company would continue to leverage its rich set of innovative VAS products like Voice Chat, Devotional Portal, and Live Streaming in addition to its flagship products of Mobile Radio and CRBT. While its footprint is currently concentrated on the Anglophone markets in Africa, the company is actively seeking opportunities for expansion into the major Francophone markets of DRC and Cameroon.

“Content is a critical success factor for entertainment VAS, and we have secured premium content in all our markets”, mentioned Vijay Jadhav, Chief Operations Officer for Spice VAS Africa. Commenting on Spice’s Africa strategy, Jadhav explained that the company recognizes the individuality of each market and tries to secure both popular music as well as religious content for all denominations. It has signed several exclusive contracts with top gospel and popular artists and music labels in Tanzania, Kenya, Uganda, and Nigeria, in addition to non-exclusive contracts with music copyright societies in these countries.

Safaricom Freezes Staff Hiring

By Dan Muhuni

Mobile operator Safaricom says it is freezing any new staff hiring for the rest of the year as part of a cost cutting strategy.

The moves comes at a time the regions most profitable company is experiencing stiff competition in the telecoms market that threaten to eat into its revenues.

Safaricom Chief Executive Officer Bob Collymore has announced that the operator was currently implementing a new strategy that will help it respond more effectively to market changes in the sector.

“There is a head count freeze and also in the next few years there is going to be very little hiring if any but we will communicate this at a later date,” Mr Collymore said.

Safaricom will be looking to maximise the efficiency of its current employees, a move that could see them adopt double roles within the organisation.

It is currently reviewing the current market dynamics as it looks for how best to complement the declining voice revenue.

Mr Collymore said at its current tariffs, the business is self-sustaining arguing they were preparing for future price cuts as the Communications Commission of Kenya (CCK) continues to evaluate the interconnection and termination rates.
“At our current prices and numbers it works but for other people it could be a challenge,” he said.

The cutthroat competition in the telecoms market has proved a reality check for operators as they look to keep costs down.

The Safaricom chief also ruled out outsourcing and shutting down certain departments saying: “We are working through the budgets to find more creative ways to keep our costs down and people cuts is not the only cost you can look at.”

Mr Collymore said rather than getting carried away with the current price wars, Safaricom would instead continue to introduce innovative services that ensure it remains the market leader.

“This to me is a more interesting discussion to be having rather than to one shilling because we have a lot of exciting stuff coming out that ensure we are first to market,” he said.

At the same time, the operator has also ruled out the need for price controls in the sector but should instead be more responsive to existing market conditions and understand the consequences of drastic price cuts.

“The government needs to understand that we can’t meet that agenda if revenues keep coming down. You need profitability to invest, Mr Collymore said.

IBM to work with the goverment institutions in Kenya

By Dan Muhuni

An international team of consultants from the IBM's Corporate Service Corps program has arrived in Nairobi for a one-month project.
The consultants will work with the Kenya ICT Board, the Kenya e-Government initiative, the Ministry of Information and Communication and the Postal Corporation of Kenya (PCK) on a number of initiatives to help meet key ICT objectives in the Vision 2030 plan.

IBM East Africa Country General Manager Anthony Mwai said IBM was committed to developing the utilization of information technology by government agencies and educational institutions to spur rapid economic development.
"In return, IBM staff and communities can reap the mutual benefits of global partnership while developing its next generation of leaders," Mr Mwai said.

The team of 12 IBM employees from nine different countries will work on the ground for one month.

They will work with PCK to review the changing economic landscape in Kenya and develop a plan to deliver financial services to the poor across Kenya.

The IBM team will work the Kenya ICT board to help address the IT skills gap in the country and support the development of the business process outsourcing sector in the country.

The current engagement in Kenya comes on the heels of a number of previous Corporate Service Corps visits to Africa - a focus program for the continent.

Since July 2008, IBM has deployed 327 personnel on 29 teams to South Africa, Tanzania, Nigeria, Ghana, Kenya, Morocco, and Egypt.

Through these projects, IBM has worked with local organisations and businesses across Africa to support community-driven economic development.

As a global program, over the past three years the IBM Corporate Service Corps has deployed close to 1000 IBM employees on 100 teams to 20 countries around the world.

Projects vary from assisting networks of entrepreneurs and small businesses trying to grow and reach export markets to the adoption of new and smart technological ideas by private and public sectors.

Decade of Action for Road Safety 2011-2020 to be proclaimed by governments around the world

Dan Muhuni receives UN New road safety Decade Tag from
Avi Silverman FIA Foundation

By Dan Muhuni
The United Nations Decade of Action for Road Safety from 2011 to 2020 is due to be formally launched in Kenya and around the World mid this year. This comes at a time where the global epidemic of road crash fatalities and disabilities is gradually being recognized as a major public health concern.
Speaking during Decade of action for road safety announcement in Nairobi, Avi Silverman, Commission for Global Road Safety’s Head of public affairs said “In the resent past road carnage worldwide is on the increase. We are intensifying road safety strategy as part of Kenya’s Make Roads Safe campaign and the United Nations Decade of Action for Road Safety from 2011 to 2020. We call upon every Kenyan to partner with government and go all out to ensure safer roads," added Silverman.
Silverman said that Kenya’s athletes are at the forefront in promoting this crucial UN initiative. The whole world is facing a road deaths crisis of epidemics proportions which requires a global response. The aim is to save millions of lives over the next decade, and as ambassadors for this cause Kenya’s athletes are leading the way.

In Kenya Athletic Kenya  launched the endorsement of the tag and UN Decade at the National Cross Country Championship held over the weekend at Uhuru Gardens.
Silverman said “Kenya’s star competitors will then wear the yellow road safety ‘Tag’ when competing at international events such as the world Cross Country Championships in Punta Umbria, Spain and other major competitions worldwide”.
Unfortunately, the industry’s vast growth has been accompanied by increasing road traffic accidents that have threatened safety of Kenyan travelers.
David Okeyo, Secretary General of Athletic Kenya said: We want to honour those who have suffered. Prominent Kenyan athletes have been killed or injured in road crashes and as a tribute to them and their families we have joined the UN Decade of Action for Road Safety. We will wear the Decade Tag with pride. We want to send the message loud and clear that with support and action around the world, lives can be saved.
A report available to us from the Association for Safe International Road Travel (ASIRT) a non-governmental, humanitarian organization shows that Nearly 1.3 million people die in road crashes each year, on average 3,287 deaths a day. An additional 20-50 million are injured or disabled. More than half of all road traffic deaths occur among young adults ages 15-44. Road traffic crashes rank as the 9th leading cause of death and account for 2.2% of all deaths globally. Road crashes are the leading cause of death among young people ages 15-29, and the second leading cause of death worldwide among young people ages 5-14.
The report further shows that Each year nearly 400,000 people under 25 die on the world's roads, on average over 1,000 a day. Over 90% of all road fatalities occur in low and middle-income countries, which have less than half of the world's vehicles. Road crashes cost USD $518 billion globally, costing individual countries from 1-2% of their annual GDP. Unless action is taken, road traffic injuries are predicted to become the fifth leading cause of death by 2030.
In Kenya alone each year, the road carnage has tripled from 900 in 1963 to 1000 in 1989 to 3,700 in 2010. In these accidents more than 3,700 persons were killed, 6,650 were seriously injured and 11,094 had minor injuries. The causes of the accidents included reckless driving, non-roadworthy vehicles and poor conditions of the roads.
The report further shows that Kenya, with an average of 7 deaths from the 35 crashes that occur each day, has one of the highest road fatality rates in relation to vehicle ownership in the world.
“Nearly 3,700 people are killed on Kenyan roads annually. This translates to approximately 68 deaths per 1,000 registered vehicles, which is 30-40 times greater than in highly motorized countries. Road traffic crashes are the third leading cause of death after malaria and HIV/AIDS and present major public.

health problem in terms of morbidity, disability and associated health care costs. Despite this huge burden, road safety measures in place are ineffective, characterized by crack downs on motor vehicles following a tragic road crash”.
These accidents have been occasioned by the government’s neglect of the road sub-sector in the past 10-15 years. The government has so far taken very few measures to correct the situation. First, it has developed the integrated national transport policy. Secondly, it has introduced reforms in the operation of public service vehicles (PSVs) by publishing Legal Notice No.161 in October, 2003 and lastly the infamous Michuki traffic rules that are nowadays things of the past.

Microsoft lance Windows 7 Kiswahili Interface Pack

Par Dan Muhuni 

Global logiciels leader sur le marché Microsoft a lancé aujourd'hui une version en swahili de ses systèmes d'exploitation Windows 7 ciblage plus la région Afrique de l'Est. Cela signifie que les locuteurs swahili auront accès à un plus large éventail de logiciels disponibles dans leur langue maternelle. Le produit est prévu pour permettre à de nombreux orateurs kiswahili à maîtriser l'informatique personnelle dans la langue. Le développement doit permettre d'accroître la population de l'Afrique de l'accès à la technologie et de donner aux gouvernements une occasion de développer et d'étendre l'utilisation de l'information et de la technologie dans leurs économies. M. Louis Otieno, le directeur général de Microsoft Afrique orientale et australe, a déclaré utilisateurs de la version kiswahili à Microsoft Office 2003 pourrait localiser leur interface en installant un Language Interface Pack (LIP) qui est disponible sur le Web gratuitement. "Le Kiswahili est officiellement une langue internationale parce que tant de personnes la parlent. Avec plus de 5 millions de locuteurs natifs et plus de 150 millions d'Africains de langue Kiswahili sur une base quotidienne, ce qui rend la langue la plus largement compris en Afrique après l'arabe. La disponibilité de Microsoft Windows 7 en Kiswahili est sans aucun doute une avancée remarquable vers l'élimination de la barrière de la langue pour accéder à la technologie », a ajouté Louis Otieno. «Nous croyons que la technologie a un rôle plus important à jouer dans le maintien de la diversité linguistique, non seulement à promouvoir la compréhension mutuelle et le dialogue, mais aussi à renforcer les économies locales. Toutes les communautés sont trop souvent exclus des TI maîtrise de compétences, et les possibilités d'emploi qui accompagne, par manque de technologie dans leur langue locale », a ajouté M. Otieno Au cours des cinq dernières années, Microsoft a travaillé avec des partenaires à travers le continent pour mettre les langues locales à la vie. Actuellement, notre produits Windows et Office sont disponibles en 15 langues écrites et parlées en Afrique: l'afrikaans, l'amharique, anglais, arabe, français, haoussa, l'igbo, le xhosa, le zoulou, le kiswahili, le portugais, le sesotho SA Leboa, setswana (Tswana), l'espagnol et Yoruba. Cela signifie que Microsoft Windows et Microsoft Office sont disponibles dans la Première et la majorité de langue seconde de l'Afrique de 1 milliard de personnes. Selon le directeur de l'Institut kenyan de l'Education, Mme Lydia Nzomo, «Fondements de l'apprentissage dans l'ère de l'information sont l'exposition et de confort avec la technologie. Offrir aux enfants l'accès à des ordinateurs dans leur propre langue veut dire qu'ils peuvent apprendre plus rapidement, de développer plus rapidement les compétences et connaissances informatiques indispensables quand ils quittent l'école. " «Avoir accès à la technologie dans une langue locale crée une plate-forme pour une meilleure communication et collaboration entre les écoles, les entreprises, les gouvernements et les communautés dans toute la région», a déclaré Mme Nzomo
"C'est une occasion vraiment capitale. Il est la première fois que Microsoft a mis les outils dans les mains de la population locale pour aider à développer une version localisée d'un logiciel," a déclaré Matuga. "Nous voyons cela comme un tournant parce que la technologie joue un rôle important dans nos vies." L'application est le fruit d'un travail plus de deux mois entre les différents intervenants de l'Est et l'Afrique australe sous Microsoft large "Local Language Programme. Le programme était dirigé par Mpasua Msonobari, chef de la direction des langues en Afrique. Selon M. Mpasua, une équipe d'experts linguistique participé à la création d'un glossaire des mots swahili plus de 300.000 pour les termes informatiques communs. Le LIP est conçu pour donner aux gens l'accès à la technologie dans une langue qui leur est familier et qui honore leurs distinctions culturelles. L'impact devrait être généralisée. "Les gens peuvent vouloir utiliser l'ordinateur mais le plus souvent sont rebutés par les barrières linguistiques», a déclaré Mpasua. Ce groupe peut désormais travailler dans leur langue maternelle. " Le développement est également considérée comme à aider les gouvernements à étendre leurs services à leur population. "Basé sur notre expérience dans d'autres parties du monde, ce qui pourrait ingénieur des changements radicaux dans la façon dont les gouvernements de communiquer avec et de servir leurs citoyens», at-il dit. "Les possibilités sont infinies, le gouvernement peut désormais poursuivre une stratégie d'accès numérique qui répond aux besoins des citoyens», a déclaré Mpasua. Selon M. Mwangi, un enseignant du primaire à Nairobi l'école primaire », le logiciel arrive au bon moment lorsque le gouvernement par le ministère de l'éducation et le Kenya Institute de l'éducation cherchent à numériser le programme." "Je suis sûr que même les étudiants qui prennent des cours d'informatique dans les écoles primaires et secondaires auront un avantage supplémentaire, car ils seront en mesure de comprendre la terminologie. "a ajouté M. Mwangi Microsoft a au fil des ans a travaillé en collaboration avec les administrations locales, universités, Expers langue, et d'autres d'uniformiser la terminologie technique dans une langue locale, un processus qui commence avec la création d'un glossaire. La terminologie recueillies dans les actes glossaire de base à l'af développement d'une application appelée Language Interface Pack (LIP). Cette lèvre permet aux clients d'installer un sa langue locale une version "peau" en haut d'une installation existante du système d'exploitation Windows et le niveau d'application Microsoft Office System. LIP convertit l'ensemble des produits Microsoft Office tels que Word, Excel, Outlook et PowerPoint - de l'anglais en swahili.

Mpesa va en plastique

Safaricom directeur général Bob Collymore (à gauche) et I & M Bank Limited CEO Arun S. échanges Mathur le nouveau visa de carte Pre-Paid lancé aujourd'hui permettra aux abonnés de transférer leurs MPESA MPESA à la carte M-Pesa Prepay Safari, qui est une organisation internationale Carte Visa co-brandée avec I & M Bank.

 Par Dan Muhuni
Entreprise de communication intégrée Safaricom a lancé un nouveau service qui permet aux clients de M-PESA de transfert d'argent de leurs comptes pour une carte Visa prépayée. Cela fait suite à un partenariat entre Safaricom et I & M Bank ont signé aujourd'hui au siège de Safaricom. En vertu de l'accord, les utilisateurs M-PESA sera désormais en mesure de transférer leurs M-PESA à la carte M-PESA PrePay Safari, qui est une coopération internationale carte Visa-brandée avec I & M Bank. Le M-PESA PrePay Safari carte se présente comme une impulsion majeure dans l'effort pour élargir les services de M-PESA de transfert d'argent à une solution de commerce mobile total. Une première d'une technologie de genre, il permet aux utilisateurs de charger le M-PESA PrePay Safari Card via leurs téléphones mobiles, qui à son tour permet aux abonnés M-PESA de magasiner en ligne, payer pour hébergement à l'hôtel à la fois localement et internationalement, et acheter des biens et services à plus de dizaines de millions de points de vente à travers le monde. La carte peut être chargé par M-PESA au Kenya pour un abonné qui a voyagé à l'étranger ainsi l'approfondissement des propositions clés M-PESA de commodité et l'accessibilité. les clients de M-PESA sera également en mesure d'utiliser la carte pour retirer de l'argent de plus de 1,7 millions de machines automatiques bancaires (GAB) à la fois localement et internationalement. S'exprimant lors du lancement, Safaricom PDG Bob Collymore a déclaré M-PESA est devenu un mode de paiement préféré acceptable pour de nombreux Kenyans et plusieurs entreprises en raison de sa simplicité, sécurité intrinsèque et de commodité. "Le fait que les individus ou les entreprises n'ont pas besoin d'engager des dépenses d'équipement lourds mise en place d'infrastructures de puiser dans les occasions d'affaires présenté par M-PESA a été un accélérateur majeur pour la croissance. Cette évolution est essentielle pour nous car elle marque un lien entre M-PESA et le plus grand réseau mondial de cartes de paiement, ce qui confirme la croissance du service de transfert d'argent mobile à une solution véritable m-commerce. " Pour tirer parti à ce sujet, M. Collymore a déclaré Safaricom continuera d'explorer des moyens novateurs pour élargir la portée de M-PESA et le menu de services. I & M Bank CEO Arun Mathur, prenant la parole à la cérémonie de signature a dit que même les Kenyans non bancarisées peuvent bénéficier de ce service depuis le titulaire d'un compte n'est pas une exigence.
«Les clients n'ont pas besoin d'un compte auprès d'une banque de bénéficier du service. Nous avons pris en considération l'énorme population non bancarisée au Kenya d'aujourd'hui », a déclaré M. Mathur. Les utilisateurs de ce service sera également profiter de la commodité des achats en ligne car ils peuvent facilement payer avec les cartes pré-payées Visa. Cela vaut également pour accéder à leurs comptes via Internet. Soulignant la nécessité croissante pour l'innovation dans le système de paiements pour tenir compte de l'évolution rapide du paysage de paiement M. Charles Niehaus, directeur général de Visa Afrique sub-saharienne a noté: «l'échelle mondiale de Visa, les produits et plate-forme de traitement offre un tremplin unique pour l'accélération et la croissance des paiements mobiles et Visa continue d'investir massivement dans l'innovation pour étendre la commodité et la sécurité de la monnaie numérique pour les populations non bancarisées dans les marchés émergents. " Depuis son lancement en Mars 2007, M-PESA a évolué au-delà de transfert d'argent dans une solution de commerce mobile total. À cette fin, Safaricom a collaboré avec divers fournisseurs de services de coupe dans différents secteurs de l'économie. Plus de 400 organisations sont maintenant accepter des paiements de factures par M-PESA grâce à la fonctionnalité masse salariale.

Safaricom launches an Mpesa Visa card

 By Dan Muhuni

Safaricom CEO Bob Collymore(left) and I & M Bank Limited CEO Arun S. Mathur exchanges the new visa Pre-Paid card launched today that will enable Mpesa subscribers  to transfer their Mpesa to the M-Pesa Prepay Safari Card, which is an international Visa card co-branded with I & M Bank.

Integrated communications firm Safaricom has launched a new service that allows M-PESA customers to transfer money from their accounts to a Visa Pre-Paid card.

This follows a partnership between Safaricom and I&M Bank signed at Safaricom headquarters today. Under the agreement, M-PESA users will now be able to transfer their M-PESA to the M-PESA PrePay Safari Card, which is a international Visa card co-branded with I&M Bank.

The M-PESA PrePay Safari Card comes as a major boost in the push to broaden M-PESA services from a money transfer to a total mobile commerce solution.

A first of a kind technology, it allows users to load the M-PESA PrePay Safari Card via their mobile phones, which in turn allows M-PESA subscribers to shop online, pay for hotel accommodation both locally and internationally, and purchase goods and services at over tens of millions of merchant outlets worldwide.

The card can be loaded through M-PESA in Kenya for a subscriber who has travelled internationally thus deepening M-PESA’s key propositions of convenience and accessibility. M-PESA customers will also be able to use the card to withdraw cash from over 1.7 million Automated Teller Machines (ATMs) both locally and internationally.

Speaking during the launch, Safaricom CEO Bob Collymore said M-PESA had become a prefered payment mode acceptable to many Kenyans and several businesses due to its inherent simplicity, safety and convenience.

“The fact that individuals or businesses do not need to incur heavy capital expenditure setting up infrastructure to tap into the business opportunity introduced by M-PESA has been a major accelerator for growth. This development is key for us as it marks a linkage between M-PESA and the world’s biggest payment card network, further underlining the service’s growth from mobile money transfer to a veritable m-commerce solution.”

To leverage on this, Mr. Collymore said Safaricom would continue exploring innovative means to expand M-PESA’s reach and menu of services.

I&M Bank CEO Arun Mathur, speaking at the signing ceremony said even unbanked Kenyans could benefit from the service since holding an account is not a requirement.

“Customers need not have an account with any bank to benefit from the service. We took into consideration the huge unbanked population in Kenya today,” said Mr. Mathur.

Users of this service will also enjoy the convenience of online shopping as they can easily pay using the Pre-Paid Visa cards. This also applies to accessing their accounts via the internet.

Stressing the growing need for innovation in the payments system to accommodate the fast changing payment landscape Mr. Charles Niehaus, General Manager, Visa Sub-Saharan Africa noted: “Visa’s global scale, products and processing platform offer a unique launch pad for the acceleration and growth of mobile payments and Visa continues to invest heavily in innovations to extend the convenience and security of digital currency to unbanked populations in emerging markets.”

Since launch in March 2007, M-PESA has evolved beyond money transfer into a total mobile commerce solution. Towards this end, Safaricom has partnered with various service providers cutting across various sectors of the economy. Over 400 organizations are now accepting bill payments via M-PESA through the PayBill functionality.

Kenya ICT Board releases Sh320Million for the Digital centres

 By Dan Muhuni
Kenya ICT Board has released Sh320Million that will  facilitate the establishment of digital access centers, to be known as Pasha Centers across the country.

The money to be distributed as a loan facility through Family Bank will be given out to entrepreneurs who would like to set up the centres, which are commonly known as 'Pasha Centres'.

Speaking during the launch on Monday, Information Permanent Secretary Dr Bitange Ndemo said through the partnership with the bank, they hope to have the money distributed to all counties, with the target being the disbursement of at least one loan per county within the next one year.

"We expect to have set up at least one Pasha Centre in each constituency. The loan application period will last for one month from today (Monday). For the majority of Kenyans, without access to computers, this government project will bring the benefits of digital communication within reach" he said.

The PS said the introduction of the centres would help the government bridge the digital divide in the country and contribute towards the attainment of the country's economic blue print.

"Technology continues to play a critical role in the achievement of the Vision 2030 goals. As part of this process, the government is paying special attention to the role of ICT as a conduit for the development of Kenya. The project is funded by the World Bank and the Government of Kenya.

Pasha Centres will provide a variety of services that include the following: Internet access, training and educational material provision, mobile and agency banking, government services and data collection for government as well as Business Process Outsourcing.

An entrepreneur will obtain a loan from Family Bank for up to a maximum of Sh3 million to set-up or expand an existing digital access centre as well as provide technical consultancy to support the technical set up, management and continuous training and skills development.

Mpesa under threat as Tangaza money transfer service launched

 By Dan Muhuni
For the first time in the country, Kenyans can now run a mobile money account without necessarily owning a mobile phone.

This follows the launch of a new mobile money transfer service dubbed "Tangaza" by Mobile Pay Limited. It also enables one to directly buy or sell stocks at the Nairobi Stock Exchange, right from the mobile platform. Officially unveiling the new service, Central Bank of Kenya (CBK) Governor Njuguna Ndung’u said the move will see many more Kenyans access mobile banking services cheaply and conveniently.

In contrast to conventional mobile money transfer services in existence, Tangaza operates across all four mobile networks in Kenya. OS anyone can u=se this service irrespective of the network(s) they have subscribed to.

Users can also register for accounts without necessarily having a mobile phone. They will, however, have to link the account with their SIM cards to allow accessing the account via the mobile phone.

"The service has already been piloted and seen it can work," Prof Ndung’u said. He said the mobile money transfer service in Kenya has so far witnessed massive economic benefits with subscribers across all the mobile networks standing at 15.4 million.

He said CBK will continue working with Communication Commission of Kenya, the Ministry of Information and other relevant authorities to ensure the mobile services are fraud free and cost-friendly. Statistics show that on the mobile money platform Sh2.45 billion a day is transacted daily.

Like other existing mobile money transfer services, the Tangaza Money Transfer lets people send and receive money instantaneously using their mobile phones or a personal digital assistant (PDA) held by an agent.

Recipients receive text messages when they are sent money and can collect it from any of its agents spread across the country. However, unlike other existing operators, the new system ensures subscribers register their details, photographs and fingerprints and thereafter are only required to place the finger on a finger print reader without necessarily having to produce an identity card.

As a security measure too, the subscribers register a unique pin (Personal Identification Number), for authorising transactions. This is expected to radically reduce transaction costs and guarantee better access to the illiterate and those who do not own mobile phones. In the existing mobile money transfer services subscribers are required to produce identification documents before they can be allowed to transact.

"Tangaza has the best security features locally due to the fact that we know our customers as we have all the identification details including their photograph and finger prints," said Mobile Pay’s Managing Director Oscar Ikinu. He said once registered, subscribers will not have to produce any identification document or mobile phones to withdraw.