1. DEVELOPMENT OF DIGITAL FINANCIAL INCLUSION IN KENYA
FRANCIS WANGUSI
DIRECTOR GENERAL/COMMUNICATIONS AUTHORITY OF KENYA

2. WHAT IS THE SUCCESS STORY?
KEY STATISTICS ON MOBILE MONEY IN KENYA - MARCH 2014
(SOURCE CENTRAL BANK OF KENYA)
Active mobile money Customers
12.5M
Registered mobile money accounts
26.2M
Mobile money transactions per day
30.0M
Adult population using mobile money
59%
Mobile Money transactions in KES/month
192.6BN
Mobile money agents
120,000
By 2006, only 185,000 of the adult Kenyans were formally banked, but by March 2014, 26.2M accounts had been registered on mobile money platforms, 59% of which were active with a total of 116,196 mobile money agents.

3. Financial Regulator/driver
DRIVERS OF THE SUCCESS STORY
Motivator with its blue print of making a middle income economy by 2030
Deepened and broadened the penetration of ICT and Financial services
Deepened and broadened Financial services through progressive financial regulation
Deepened and broadened penetration of ICT services through progressive financial regulation
ICT regulator/driver
Financial Regulator/driver

4. KEY ACTORS IN MOBILE MONEY
Policy & Regulatory
Actors
MNOs
Mobile Money Platforms

5. DEVELOPMENT OF MOBILE FINANCIAL ECOSYSTEM IN KENYA
EVOLUTION OF MOBILE MONEY SERVICES
IN KENYA
DEVELOPMENT OF MOBILE FINANCIAL ECOSYSTEM IN KENYA
2005
Safaricom finalizes the development of the framework for M-pesa pilot as microfinance repayment tool
CBK gives Safaricom an authorization to pilot the M-pesa framework
The M-pesa pilot commences in town called Thika in Kenya
2006
M-pesa pilot successful complete
Safaricom seeks further authorization to convert from microfinance to mobile money transfer
The Financial Regulator directs Safaricom to further information regarding M-pesa legal structure
2007
CBK gives an objection to the conversion M-pesa from microfinance to mobile money transfer platforms
The first mobile money transfer launched in Kenya
2008
M-pesa facilitates bill payment and bulk salary payments
M-pesa customers begin getting M-pesa services at Post bank branches
Introduction of cardless ATM withdrawals to M-pesa customers
2009
National treasury gives M-pesa a clean bill of health
GOK exempts all financial services including mobile money transfer from VAT
Amendment of the financial act 2009 allows the use of agent banking
GOK allows M-pesa customers to receive directly international remittances through M-pesa platform
Some microfinance okeys customers to make payments through M-pesa (SMEP & MFL)
Insurance companies begin to insure customers using M-pesa (Kilimo)
Partnership between Kenya power and Safaricom to enable KPL customers pay bills through M-pesa
Another partnership with Grundfors enable rural households to pay for safe water through M-pesa
Celtel Kenya LTD and ESSAR mobile Kenya LTD introduce competition to M-pesa through Launch of their mobile money platforms.

6. DIVERSITY IN DIGITAL FINANCIAL SERVICES
Easy & Fast Mobile Saving
& Loaning Services
Flexible e-Banking on
Mobile Platform
Accessible Bank Saving
& Lending Service
The mobile money eco-system now integrated under the National Payment System – Created more confidence and resilience through oversight.

7. FROM MOBILE MONEY TRANSFER TO DIGITAL INCLUSION
Rapid transformation from P2P to P2B, P2C, B2B and vice versa

8. DFS HAS ACCELERATED E-COMMERCE GROWTH AND EMPLOYMENT CREATION
Booming business in small markets being accelerated by
Mobile financial services
The highest no. of transactions
take place within the mobile money markets through selling of goods and services, including cattle trade as well as P2P money transfers

9. GOVERNMENT WHIPPED TO DIGITAL FINANCIAL PLATFORMS TO IMPROVE SERVICE DELIVERY
Enhancing the way every Kenyan accesses Government services
Konza the first smart city in Kenya being built for digital compliance including digital financial inclusion

10. CHALLENGES FACING DIGITAL FINANCE SERVICES IN KENYA
Managing
Competition
Unprecedented
cases e.g Thin SIM for Mobile Money
Dynamic Innovations requiring Dynamic Regulations
Cyber Security Threats & Fraud

11. CONCLUSION
Digital financial inclusion is part of the enablers accelerating the country’s aspiration of being a middle income economy by 2030.
Kenya’s experience underlines the importance of PPP and international cooperation as the way to go in order to fully exploit the potential of DFS and DFI.

12. THANK YOU