KCB to venture into agency banking

By Dan Muhuni

KCB CEO n Paynet Group CEO

KCB has already started pilot for the much publicized agency banking in the country. This was announced by the KCB Group Chief Executive Dr Martin Oduor-Otieno during the KCB- Paynet partnership signing. The partnership will see PesaPoint member bank cardholders be able to withdraw money through the KCB QuickServe ATMs in Kenya.

Under the deal, PesaPoint connected cardholders will access their accounts as well as enquire about their balance in any of the KCB QuickServe Automated Teller Machines (ATMs). The initial KCB and PesaPoint partnership was launched three years ago but has now been taken a notch higher.

“Over and above the KCB QuickServe ATMs, KCB account holders can access their cash through any PesaPoint and Kenswitch ATMs. This venture will also open up over 340 KCB QuickServe ATMs in Kenya to customers of the more than 30 banks who are currently on the PesaPoint network,” KCB Group Chief Executive Dr Martin Oduor-Otieno said.

Speaking at the launch ceremony, Bernard Matthewman, CEO of Paynet Group said “ We are delighted to partner with KCB in this strategic initiative that will not only provide PesaPoint customers with over 300 additional points to access their pesa across the country but will also maximise the KCB ATM network. Ultimately this is about making the most effective use of existing infrastructure which not only benefits our customers but also builds towards a more integrated and efficient market and we will continue to partner with banks to extend this”.

Oduor-Otieno said this partnership with Paynet Group will allow more than 2.5 million PesaPoint member bank cardholders access their accounts in any of the KCB QuickServe ATMs in Kenya.

Additionally, this partnership will lead to optimization of the KCB ATM infrastructure by enabling PesaPoint cardholders to access services at any of these ATMs in Kenya.

“This partnership has also allowed the bank to utilize its 340 ATMs in Kenya to its full capacity contributing to its revenue base and support the Central Bank of Kenya (CBK) strategy of integration and sharing of electronic delivery channels,” said the Chief Executive.

Rolled out about 13 years ago, KCB QuickServe ATM service was amongst the first in the country. Since then, KCB QuickServe network has grown and is currently the most accessible ATM in region.

Internet Prices could drop if we implement Backhaul fibre

By Dan Muhuni

Internet prices in Kenya can significantly drop if backhaul and last mile connectivity is properly achieved, a regional Sea submarine cable executive has said.

Mr. Julius Opio, SEACOM’s East Africa Head says the unregulated way of deploying the two important fibre links to end users means ICT companies in Kenya are spending a huge amount of their resources on ensuring the connections are in place.

Backhaul fibre connectivity refers to the interconnection between the under-sea and inland cables, while last mile connectivity is the final link that joins the metro cable to the clients.

“We need a regulated way to deploy fibre in Kenya in a cost effective and efficient way using international standards,” says Opio.

He says that although there has been progress in the last mile fibre connectivity in the last 3 years, the initiatives have been spearheaded by individual Internet Service Providers (ISPs) and Operators as opposed to being guided by policy.

“Our regulatory law does not incorporate data fibre connectivity,” said Opio. He was speaking at an America Chamber of Commerce in Kenya function, held at the Intercontinental Hotel, Nairobi.

Despite the fibre connection hiccups, Internet uptake in Kenya has been phenomenal since the landing of the sub-marine cables in Kenya. Last year, approximately 7.8 million Kenyans logged onto the Internet, with the figure increasing to 8.6 million in the first quarter of 2011, says Opio.

Opio says the stage is now set for a digital revolution, and predicted that in the next 1 to 3 years, consumer spending will go online. “Within this period, there will be a major impact in the way we do our business,” says Mr. Opio.

According to SEACOM, iconic inventions like mobile money transfer services, will become web based, even as there will be major transformations in content management with people accessing TV programs and news from the Internet, through Internet Protocol TV (IPTV) solutions.

Opio says with high speed broadband capacity now available in Kenya, global businesses will be hosted in the country, while Small and Medium Sized Enterprises (SMEs) will seek to outsource some of their services like data hosting and network security, software services like payroll; Human Resource and Enterprise Systems. “These will be stored on the web, such that businesses will not have to buy software and get their IT departments to run it,” says Opio.

CCK guarantee Kenyans that Mobile Number Portability must be executed

 By Dan Muhuni

Despite some of the operators cautioning that the proposed number portability is fraught with risk Communication Commission of Kenya (CCK) has come out in protection of the extensive reports that a number of mobile phone operators are not prepared to put into practice Mobile Number Portability (MNP) by the set date of 1st April 2011, the Communication Commission of Kenya (CCK) has come out to ensure the public that the process is on course.

Service Provider Number Portability is a service that gives a mobile subscriber the option of retaining his/her mobile phone number even after switching to a different network, providing them the flexibility to migrating with their numbers to any network and operators to continuously improve the quality and prices of their services in order to retain and attract more customers.

However, experts have cautioned that the threat for operators is that regulators may use it as a tool to force tariffs down in a low income-earning market and create opportunities to license more operators.

South Africa, which was the first market and the benchmark for number portability in Africa, has experienced a marketing frenzy as rival operators sought to outmaneuver each other with cheaper and more innovative packages, forcing tariffs down.

Studies also show that subscribers in countries where handset subsidies are prevalent are likely to form part of a "grab and go" trend, joining one operator for a new, trendy phone and then migrating to another that offers the best pricing or most attractive services.

But while this looks enticing to mobile phone users in Kenya, the operators are also cautioning that the proposed number portability is fraught with risk.

"Airtel Kenya supports the eventual introduction of number portability into the Kenyan market but does not view it as being feasible in the Kenyan market today due to various factors such as the high implementation costs, low rural mobile penetration and relatively low cost of obtaining a sim card in the predominantly pre-paid market," said Rene Meza, the company's managing director in a past interview.

In December 2010, Kenyans witnessed the signing of a service agreement by the four mobile operators in the country - Airtel, Safaricom, Orange and Yu – with  M/s Porting Access Kenya Ltd for the implementation of MNP. According to the agreement, there will be a maximum charge of not exceeding Kshs. 173 (exclusive of VAT) for each number port and a Service Level Agreement. The agreement also provides for the establishment of an MNP working group consisting of representatives from all operators. The MNP working group will collectively implement and manage the provision of porting services.

MNP was set to come into effect on 1 April 2011, three months behind the earlier scheduled date of December 31, 2010. Recent reports in the media indicated that some mobile operators like Orange are not ready to implement Mobile Number Portability (MNP) by the set date of 1st April 2011.

Commission has come out in defense of their position. In a statement issued by CCK Director General, Charles Njoroge, the Commission states that they have been working closely with the mobile operators and the licensed porting service provider (i.e. M/s Porting Access Kenya) to ensure that the implementation process is on course.  According to their latest signed reports of the technical meetings, all operators are ready to commence testing their MNP systems this week.

The Commission states that mobile operators and M/s Porting Access Kenya are committed to and are co-operation in implementing the service. Although the mobile operators may not be exactly at the same level of preparedness, the Commission is yet to receive any formal notification suggesting inability to implement MNP by the agreed date of 1 April 2011 from any of the licensed mobile service providers.

The Commission also states that they shall continue monitoring progress in respect to implementation of MNP and inform the public accordingly. 

HP LAUNCHES NEW TRAINING CENTRE IN KENYA

HP Managing Director Mr Ken Mbwaya in a past event

By Dan Muhuni

Global Integrated Solutions Provider, Hewlett Packard (HP) yesterday opened a new state of the art Training Centre that will seek to impart knowledge of HP products, services and the depth of information and technology capabilities that will enable its customers and partners to maximize the full potential of their company’s investments in technology.

The Training Centre is set to serve as a key resource centre for strengthening capacity of current and future customers as well as business partners by developing and providing new training programs and solutions in East Africa.

According to Ken Mbwaya, managing director, Hewlett Packard (HP) East Africa, most customers and local experts who have  invested in HP products and services have felt the need to up skill their IT staff with the relevant skills for them to effectively manage their new technologies within their respective IT environments  thus the need for an easily accessible training centre that has  embraced Global training standards by ensuring that the training centre ad highly qualified trainers and adheres to a Global curricula “In our effort to skill our customers with the knowledge on our HP products and services, we realized that we need to bring a HP run training center to Kenya to make training more accessible to our customers and partners where they can gain the necessary skills and training needed in their daily operations in IT., 80% of downtimes is due to people and processes and we at HP want to address this by engaging in proactive training of IT resources ”

He added that with limited budgets for new technology, the state of the art facility will be ideal in terms of productivity increase through better skills attained and while also minimizing n business risk with a team that is able to deliver results more cost effectively. He further noted that, the training will assist customers in their journey to becoming adaptive enterprises.

The training center will be beneficial for IT specialists and a first in the industry as HP will be able to offer virtual classrooms in addition to the traditional learning methodologies trainings are also tailored to address specific customer requirements and IT environments where simulations trainings are held.  

The customers will also be able to get HP certification after training which was recently rebranded HP ExpertONE. The certificate provides IT Professionals with an opportunity to acquire and measure skill and knowledge against a recognized IT Industry benchmark. They will also be able to attain expertise on IT Service Management and End User Technical Training amongst a myriad of other courses.

Mbwaya reiterated that HP pride in the acquisition of a prime location, world class HP certified instructors, top of the art HP equipment that is readily accessible by each student during training. Also the students will be engaged in hands on labs where they can practice live simulations depicting their work environments in a bid to offer strategic consulting and planning to help maximize return on investment.

As the world’s largest technology company, HP creates new possibilities for technology to have meaningful impact on people, business, government and society. It also brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure to solve customer problems.

Barclays introduce free ATM, Mobile, Internet banking services

BY Dan Muhuni

Barclays Kenya has introduced free internet banking services and free services under the latest mobile phone banking platform, Hello Money.

Hello Money is a groundbreaking service that enables customers to perform transactions in real time over their mobile phones. The Hallo money technology combines security, accessibility and convenience.

To facilitate greater ease of transactions, over the past two years Barclays Kenya has made several investments in the  information technology and communications structure including upgrading the credit card system and transitioning the core banking system to a new, state-of-the-art platform and partnering with Safaricom to offer M-PESA services.

Barclays Customers now carry their bank in their mobile, accessing banking services anytime/anywhere on the move. Unlike other players in the sector this is all for free.

The bank has also announced that it has waived all levies charged for use of ATM services – Barclays customers can now carryout transactions in any of the 236 automated teller machine (ATMs) services spread across all corners of the country without paying a single cent for cash withdraw and balance enquiry.

The introduction of the free channels was underpinned by Barclays Kenya’s objective to align products and services with evolving customer needs and lifestyles.

“This new offers are in line with our strategy to enhance customer service, support Branch expansion and improve management of customer complaints and resolution,” said Mr Adan Mohamed, Barclays Managing Director East and West Africa when he made the announcement.

Mr Mohamed added, “This is yet another Barclay Kenya’s innovation that goes to demonstrate we are the leaders in the industry in terms of innovation and customer service. It is also another step that shows we are going to great heights to make it much easier to bank with Barclays.”

The ATMs compliments the established and extensive network of over 117 Barclays Kenya outlets that have almost doubled from 62, of five years ago.

Mr Mohamed summed it up: “Barclays Kenya is increasingly shifting our growth strategy from increasing the number of branches to use technology as we strive to improve the bottom line.  After increased our branch networks to optimal levels the next phase for us is to tap technology to drive the next phase of growth and to offer our customers more convenient channels. Our new free channel services- ATMs, Internet and hello Money is a significant step for Barclays - one that reinforces our commitment to making our customers lives much easier.”