Here are our views on the news making headlines today for Kenya:
M-Pesa users can now send money through their mobile phones to recipients in seven African countries following the signing of an agreement with South African telecommunications company MTN. The inter-connect agreement between the region’s two biggest mobile money operators now enables convenient sending of cash between M-Pesa customers in Kenya, Tanzania, DRC and Mozambique, and MTN Mobile Money customers in Uganda, Rwanda and Zambia.
Our View: The recent suspension of terror-linked money transfer service companies in Kenya portends a huge potential for the company as this would enable it rake huge monetary benefits yet adding to the economic growth of these seven countries. Last year, Safaricom was granted a license by the Central Bank of Kenya that opened the door for M-Pesa to offer outward cash transfer services. The firm’s cross-border operations had been restricted to inward remittances. The one-sided international cash transfer services only allowed it to move money into Kenya through partners such as Western Union and MoneyGram.
Read more in the document below: