Zain Kenya lowers call rates

NAIROBI, Kenya, Aug 18 – The Kenyan mobile telecommunications market has started witnessing the Indian business model of low margins and high volume, as Bharti Airtel announced drastic price cuts for subscribers on the Zain network.

Wednesday’s launch of a Sh3 flat call rate from Zain to all other networks is a clear testimony that the Indian mobile communications giant was aggressively targeting to recruit more subscribers to its network.

Zain Kenya Managing Director Rene Meza said the move forms part of the operator’s new business model targeting the mass market as well as making mobile services more accessible to subscribers.

“As we move forward with Airtel Kenya we are going to lead from the front by investing in all fronts in order to have one single focus as part of our business model - and that is our customers,” Mr Meza said.

Bharti has already curved a name for itself in India where it operates a mass-market model that is expected to be replicated in Kenya.

Mr Meza said part of the operator’s new strategy is to boost its volumes while leveraging on the strength of Bharti to make it the market leader in the telecommunications sector.

“At the moment our focus is our growth in revenues and subscribers. Margins and profits will come as we increase our customer base and leverage on the economies of scale in reducing our call structure as we go forward,” he said.

Zain becomes the first mobile operator to take advantage of the revised interconnection rates expected to take effect from September.

The Communications Commission of Kenya has lowered the rates from the current Sh4.42 to Sh2.21. The reduction of the tariffs is likely to lead to vicious price wars in the market as operators look to position themselves but Mr Meza believes it will also give smaller operators room to grow.

Safaricom, with 78 percent of the 20 million subscribers in Kenya, has come under pressure from other operators due to the high interconnection rates that have made it costly to call across networks.

In response to Zain’s latest move Safaricom Chief Executive Officer Michael Joseph said they would be reviewing their own call structure in due course.

Mr Joseph was however quick to point out that it was important to price services in a way that guarantees returns. He is of the opinion that an operator cannot price services at below cost to make margins.

“What Bharti have said and proved is that they believe you can lower your price and you will get huge volume that will give you the high revenue and profit that you need. I however, am of the opinion that there is not that much huge volume per subscriber in terms of minutes but we will see. We each have our own strategies and we will play it out,” Mr Joseph said.

Bharti has been seen to be taking the fight to Safaricom with plans to invest Sh12 billion to grow its network and distribution system to give it presence in the country. This has since been revised upwards to Sh24 billion to cover expansion as well 3G roll out.

“Bharti is fully aware that today the level of profit is not on the positive side but at the same time they also understand that if you don’t invest in what is required of the business the net profits will not get any better either,” Mr Meza said adding the journey to the top will be long and challenging.

BY MICHAEL KARANJA

Reach for Kenya mobile TV to expand

NAIROBI, Kenya, Aug 13 - DSTV Mobile plans to expand its network to cover Kisumu, Nakuru and Eldoret by next year.

The service which offers satellite television on mobile handsets currently covers Nairobi and Mombasa only.

Digital Mobile Television (DMTV) - a subsidiary of MultiChoice - which runs the service, says it is conducting consumer research to establish what content and pricing module would be most suitable

 “We are targeting the mass market and it will be important for us to find out how customers have taken to it so far,” DMTV General Manager Felix Kyengo said on Friday.

He added that with the changes in technology consumption of television was becoming increasingly personal with consumer convenience playing a central role.

This has seen broadcasters go out of their way to find new ways through which consumers can access their preferred content on the move.

DSTV Mobile currently offers 14 channels on its bouquets including Channel O, SuperSport7, SuperSport3, Cartoon Network, Africa Magic, BBC, CNN and the current Big Brother Show.

Mr Kyengo said the 2010 FIFA World Cup played a major role in pushing up its customer numbers, but was not at liberty to disclose the actual number of subscribers.

“During the World Cup we had a major breakthrough with many people coming on board and we expect with the start of the English Premier League that our numbers will go even higher,” he said.

DSTV Mobile is currently available on selected Nokia and ZTE handsets but Mr Kyengo expects this to change in the coming months.

“As the concept catches on in Kenya you will get more mobile manufactures coming up with compatible phones,” he said.

He was speaking during the signing of an agreement with mobile network Yu to make its content accessible to Yu subscribers.

The network becomes fourth operator to offer mobile DSTV content, a move Essar Telecom Country Manager Atul Chaturvedi believes will help it grow in the Kenyan market.

“This is a competitive market and a partnership with relevant industry players is a key aspect for us to be able to provide innovative services to our subscribers.  We will relentlessly continue to pursue ways of stretching our reach to more and more customers by providing new and exciting packages targeting various market segments,” Mr Chaturvedi said.

BY MICHAEL KARANJA

Growth in Kenya mobile money transfers

NAIROBI, Kenya Aug 16 - Essar Telecom Kenya is reporting successful progress of its money transfer service YuCash seven months after it was launched.

Essar Telecom Country Manager Atul Chaturvedi says in less than a year, more than 350,000 customers have already subscribed to the service in more than 900 towns across the country.

Mr Chaturvedi said the response in the market has been ‘healthy’ and is pleased with the uptake of the service.

He said the company, which has close to 1.7 million subscribers, expects to have more than half of its subscribers signed on to the money transfer service.

“With the ongoing SIM registration we expect this number to go higher by the time it is over,” Mr Chaturvedi said.

Yu has 5,000 agents across the country and is currently advertising for more agents to boost its presence.

Mobile commerce has become a new fighting ground for mobile operators as they look to use it to lure in subscribers.

Safaricom revolutionised mobile money transfer when it introduced M-PESA in 2007. Latest statistics from the operator indicate that it has so far registered 11.8 million customers and transferred a staggering Sh523.8 billion.

Bharti Airtel, the new owners of Zain Kenya, intends to take the fight to Safaricom in the mobile commerce segment with plans to invest Sh350 million on its Zap money transfer service.

The investment will go towards increasing its Zap agents from the current 1,700 to 10,000 by the end of the year to give it better visibility among customers.

However, both Yu and Zain are reluctant to give official figures of how much they have been able to transfer arguing it was ‘sensitive information’. They however say they are pleased with the progress of the money transfer systems.

BY MICHAEL KARANJA

New media tracking launched in Kenya

NAIROBI, Kenya, Aug 12 – Synovate Research has launched a new tracking system for radio and television audiences in the country.

Synovate MD George Waititu said on Thursday that the Portable People Meter (PPM) will be rolled out in Nairobi on a pilot basis on Monday.

It will automatically detect and register radio and TV stations within a handler’s vicinity.

“We expect we will go full pilot the coming week, and that will run up to the end of the year. We will be testing the efficacy of this technology after successful encoding of all the broadcast signals within Nairobi,” he said.

The gadget, which looks like a pager is designed to detect radio and TV signals in homes, offices as well as in vehicles.

An encoding device will be installed at the transmission end of every broadcasting media house as that is the signal that will be detected by the PPM.

“The media owners have supported this initiative very well for us to successfully install those gadgets into the broadcast studios,” he said.

Advertisers and media houses will be the main beneficiaries of the new system as it will provide more accurate ratings than the old handwritten logs.

Mr Waititu said the meter will offer quality information on how and when consumers listen and watch TV and also provide advertisers with updated information while at the same time monitoring their advertisements on electronic media.

“It records data minute-by-minute, that means it will deliver to us minute-by-minute ratings as opposed to what we have currently which is 15 minutes by 15 minutes ratings,” he explained.

According to Synovate Pan-Africa Research Director Vivien Marles, Kenya becomes the first country in Africa to deploy the new technology.

She said use of the PPM will give advertising companies accurate and timely information to check on the progress of their services and products as well as make choices of where and when to advertise with particular broadcast stations.

BY JUDIE KABERIA

AccessKenya profit dips

NAIROBI, Kenya, Aug 18 - AccessKenya Group has announced a 59.3 percent dip in its profit after tax to Sh30.6 million for the six months ended June 30.

The ICT firm attributed the drop to the weakening of the shilling during the period which saw its long term dollar loan impacted.

“The business suffered a foreign exchange loss as a result of the marked depreciation of the Kenya Shilling in the last couple of months (which) impacted on our dollar liabilities,” said Managing Director Jonathan Somen.

Gross profit for the business however rose from Sh470 million in June last year to Sh598 million while the operating expenses increased marginally by 13 percent due to what Mr Somen termed as ‘careful cost management’.

“The group has delivered on improved margins Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) reflecting the beneficial impact of the investments that we have made and continued to make,” said the MD.

The balance sheet of AccessKenya, which is the only listed ICT firm at the Nairobi Stock Exchange, also remains strong with total assets of Sh1.86billion.

Although there was a reduction in internet prices during the period, Mr Somen said its revenues were not impacted negatively as it was able to significantly grow its corporate and residential customer base.

Despite the slump, the firm remains optimistic about the future and has planned the roll out of its networks in areas of its customer demands.

Already, Mr Somen said with the appreciation of the local currency over the last few weeks, they have been able to reverse some of the losses experienced in their business and that the trading outlook is positive.

BY EVELYN NJOROGE

Train top managers in ICT to nurture innovation

Kenya has in the recent past been in the spotlight as a hot bed of innovation and Nairobi has been touted as the next Silicon Valley in Africa.

The attention has been spawned by unique initiatives some of which have gone global such as the open source crisis management platform Ushahidi and the mobile money transfer sensation M-pesa.

The local tech scene is choking with talent waiting to be tapped and hopefully result into more world-class successes or case studies that will make Kenya a true innovation hub. 
Why then are we not seeing showcases that will speak of the talent that is rife?
There is a severe knowledge gap within Kenya’s top management.
I’m talking about chief executives, marketing managers, brand managers, permanent secretaries, government ministers and the list could go on…yes, I called them out, and for a reason.
Although the mobile industry in Kenya is only 10 years young and dripping with opportunity and talent, we are yet to witness the next logical step where the influencers who represent big brands and government harness this talent. 
While acknowledging what Information PS Bitange Ndemo and his team have done to improve the country’s infrastructure as pertains to connectivity to the world, the task ahead is still daunting and it cannot be left to one team.
I am yet to come across an executive course that offers key learning on the mobile space, which has become an integral part of business and social life.
The approach I would advocate is the training of knowledge champions in organisations, who will be well versed in the entire mobile ecosystem and understand the various players and value propositions available to them.
This understanding will plant the seeds of innovation with organisations having the ability to generate ideas from within, thus creating ownership.
I guarantee the implementation of these ideas will not be a problem since we are not short of talent.
If we can bridge the knowledge gap between brand owners, managers and innovators, the benefits will be three fold: innovative product and service ideas stemming from a knowledge position, engagement of the talented yet underused resource base leading to improved skill sets and we may just cement ourselves as the Silicon Valley in Africa.
After all, we have it all going for us. 

BY Mbugua Njihia

Internet data exchange point launched in Coast

The Telecommunications Service Providers Association of Kenya (TESPOK) has launched an Internet Exchange Point in Mombasa to improve efficiency and cut connection costs.

The second IXP in the country, will ensure that all the region’s traffic is exchanged locally, which will improve Internet performance for end users, save operators the expense of passing regional traffic via Nairobi, and reduce the costs associated with traffic exchange between Internet Service Providers (ISPs), TESPOK chief Fiona Asonga said.

In early 2000, undertook the initiative to implement and operate a neutral, non-profit IXP for its then 6 members.

The IXP has experienced phenomenal growth with an average traffic growth rate of 150 per cent annually, according to Ms Asonga.

The new IXP will be hosted by SEACOM for the next three years and is targeting 12 ISP providers in Mombasa and other global firms who have also expressed interest in it.

“Mombasa is the landing point for all undersea fibre cables to Kenya and other landlocked countries in East Africa, making it an attractive location for international carriers to interconnect with the region,” Asango said, adding that Google has already expressed interest in using the IXP.

By enabling more efficient and cost-effective Internet traffic flow, it is expected that the IXP will help stimulate the region’s ICT sector.

“The establishment of the IXP was facilitated in part by the Internet Society’s African Interconnection and IXP Programme, an initiative to promote more robust Internet connections within, and between countries in Africa,” Asonga said. 

Before TESPOK established Kenya Internet Exchange Point in Nairobi, all Internet traffic was exchanged internationally.

According to Seacom president Brian Healthy, the upstream traffic for the domestic destination is between 30-40 per cent.

During the first two weeks of KIXP’s operation, measurements indicated that latency was reduced from an average of 1200-2000 milliseconds (via satellite) to 60-80 milliseconds via KIXP. 

By GITHUA KIHARA

Online shopping keeps consumers out of KRA reach

Increasing purchase of books and entertainment products through the internet is denying the Kenya Revenue Authority consumption tax.

A recent survey of 1,700 people by TNS Research International and the Kenya ICT Board found that 18 per cent and 24 per cent of the respondents buy music/movies and electronic books online, signalling the growth of online shopping.

The Kenya Revenue Authority collects taxes, including VAT or consumption tax on goods and services delivered physically to consumers.

But online-based transactions where consumers pay for and receive music, movies and electronic books among a range of other virtual goods from foreign vendors are a new model that leaves consumers out of the VAT tax bracket.

“If one buys a music CD in town, he pays a tax on the commodity the same way he would if he orders it online but have it physically delivered from the supplier. But if the person buys and downloads the music online from a foreign vendor, no consumption tax applies,” said Mr Rajesh Shah, a tax partner at PriceWaterHouseCoopers (PwC).

“The major problem is that tax laws have not kept pace with the development of electronic commerce. Consumers have no obligation to pay for things they buy online,” he added.

Analysts reckon that the trend where middle and upper class consumers pay to download software, books, music, videos, and electronic version of books from vendors like Amazon will grow in the coming years on the back of rising incomes and a more reliable internet infrastructure.
A new report by PwC projects the value of consumer spend on digital entertainment and media products in Africa and Middle East to grow at a compound annual rate of 4.6 per cent to reach Sh46.5 trillion in 2014.
In Kenya, professionals and companies are already taking up smart phones and new communication devices like the iPad, a computer tablet, that allows users to buy a host of applications from centralised virtual stores developed by companies in the developed world.
Kenya is among the fastest and most sophisticated adopters of technology in Africa and a rapid growth of global e-commerce means millions of shillings spent by consumers will go untaxed.
Analysts propose several solutions that could bring the new shopping styles under the tax bracket.
The easiest solution is to have the foreign vendors set up local subsidiaries or team up with local agents so the consumption tax is collected by their local representatives. 
This is the model applied by pay TV provider Multichoice which broadcasts to a regional audience but viewers in each jurisdiction pays consumption tax to the conglomerate’s local operatives for onward remittance to tax authorities.
Other solutions involve international trade co-operation and changes in tax laws.
Foreign companies, for instance, can collect consumption tax based on the specific rates levied by the country where their consumers come from and then remit the same to local tax authorities.
“The tax laws can be amended and technological infrastructure set up to put the obligation on consumers to pay taxes on the value of their spend on intangible goods in a reverse, self-assessment system,” Shah said.
The internet has created a border-less environment, knocking down national boundaries that governments depend on to tax residents and nationals, leading to a raging debate on whether or not to tax e-commerce.
Some analysts say the value of tax from e-commerce transactions is still small but will rise in the coming years, adding that failure to tax e-commerce will leave governments with a smaller tax base.
In such a case, States are likely to increase direct taxes to fund public projects, a move that will hurt trade and investments.
In addition, raising taxes is seen as a way of entrenching equity in global trade.
“What is important is to correct the competitive imbalance and to establish an equitable taxation structure that addresses e-commerce in a fair and realistic manner,” the European Commission said when it introduced taxes on e-commerce in Europe.
But others argue that levying tax on e-commerce will hinder its growth.

By VICTOR JUMA 

New deal to provide teachers with e-syllabuses

Teachers in public schools can now buy laptops loaded with the current syllabus and training material following a public/private partnership initiative which aims at integrating e-learning in the education system.

The partnership is between Safaricom, Equity bank, Microsoft, Intel, Kenya Literature Bureau (KLB) and Kenya Institute of Education (KIE) and the Teachers Service Commission targeting about 240,000 teachers.

The bank will provide loans for the laptops bundled with internet usage through Safaricom centres after which the devices will be loaded with KIE syllabuses for both primary and secondary education provided by Microsoft.

“Cost has been a major challenge in fully adopting use of ICT. With the fibre optic cable the inaccessible cost of internet has been addressed and this partnerships will address the cost of accessing the devices necessary for promoting use of ICT in education,” said Mr Michael Joseph, the Safaricom chief executive officer.

According to Dr James Mwangi, Equity Bank CEO, the institution has set aside Sh13 billion to be advanced to teachers for the purpose.

Kenya:ICT sector registers remarkable growth-Economic Survey 2010

The ICT sector in Kenya has kept growing with almost half of Kenya’s population now having access to telecommunication services.

Mobile telephony has grown by 34.2 percent, from 12.9million subscribers in 2008 to 17.4million subscribers in 2009 according to the just released economic survey 2010.Currently it is estimated the number of subscribers has surpassed the 20million mark. The mobile telephony capacity has also increased from 26.0million in 2008 to 29.0million in 2009.

However the demand for fixed line connection dropped by 72.4 per cent to 2,259 in 2009 reflection the shift to the use of mobile phones.The number of the once famous telephone booths dropped from 6,000 in 2008 to 5,000 last year.There were also major developments in the mobile telephony sector as competition among the four operators (YU, Orange, Zain and Safaricom) increased leading to lower call charges.

The report notes there was intensified provision of financial services via mobile phones by most operators, enabling subscribers to transfer money without need of holding bank accounts.

SMS popularity

Text messaging is becoming more and more popular among Kenyans. The volume of short messaging Service increased to 3,284.7million from 361 million in 2008.
Expanded penetration of mobile phones and portable Internet modems has also seen more Kenyans connected to the Internet.

Internet users increased from 3,4million in June 2008 to 3.6million in June 2009.

The number of active Internet Service Providers however fell from 56 in 2008 to 52 last year.

The year 2009 also saw the Government launch of Digital TV broadcasting which is expected to improve the quality of content produced.

The year saw 28 FM new frequencies assigned to broadcasters compared to 30 FM frequencies assigned in 2008. Parliament got 22 frequencies, KBC (2) and private broadcasters (4).

It was also the year when Parliament enacted the Kenya Communications Amendment Act, 2009 which expanded mandate of Communication Commission of Kenya to include regulating broadcasting and electronic transactions.
Penalties were also introduced for cyber related crimes, a move that would boost e-commerce.

Submarine cables

The submarine cableswill enhance affordability for users and improved international connectivity between Kenya and the rest of the world. The ongoing construction of fibre optic connecting all district headquarters in the country will boost the national transmission infrastructure in the country,” reads the survey report in part.

According to the survey, postal services continue to be overtaken by emerging private courier services.

Six post offices were closed in 2009 reducing the number to 701 down from 207 post offices in 2008. There was reduced number of reduced number of installed private letter-boxes by 2.2 per cent from 414,000 to 405,000 in 2009.The number of post offices has reduced from 834 in 2004 with private courier operator outlets increasing from 437 in 2005 t0 606 in 2008 and to 622 last year.

The number of licensed courier has also increased from 148 in 2008 to 180 last year marking a 21.6 per cent growth. Between 2008 and 2009 private courier operator outlets grew by 2.6 per cent.

Kenya: Receiving landline calls while on the move

It is now possible to receive calls directed to a fixed line via the mobile phone.This means one must not stay in the office to receive and reply to land line and faxes.

UUNET Kenya, a leading business communication solutions provider has launched the new solution, which directs communication from a fixed phone to a mobile phone or vice versa.
This technology is especially beneficial to professionals who tarvel alot but who must handle office matters.

For journalists, this is a ’saviour’ technology as it will ensure one does not miss a call from a source.

Mr. Omariba said UUNET Kenya is already in discussions with their principal partner MTN Business, even as the firm’s engineers are already testing the requisite equipment to facilitate the service.

The convergence will enable UUNET Kenya customers to do virtually anything that can be done in the office while on move, including handling of faxes and even telephone calls.
However, the solution will require UUNET Kenya to work with a GSM povider that has a 3G license, or expand their Beyond Broadband WiMAX solution which is currently available in Nairobi, Mombasa, Kisumu and other key towns countrywide.

BY JAMES RATEMO IN NAIROBI

Kenyan Video made from Free and Open Source Software- testimony of what FOSS can do

Software is the engine of technology and if properly implemented can grow economies in leaps. But at what cost? For ages now poor penetration and high cost of technology has seen Africa lag behind in implementing emerging profitable technologies. However hope lies in the horizon in Free and Open Source software which is already changing fortunes for poor masses around the globe. The debate on whether Africa should make better use of Free and Open Source Software (FOSS) or not is quickly coming to a close. FOSS is winning fast and more and more technology professionals are dropping the more expensive proprietary software for this new platform. In early 2009, Kenya

Courts adopt technology to fight backlog of cases

Court of Appeal Judges will no longer need to crisscross the country to handle appeals cases as this can be now done online.The tele-presence technology spearheaded by Cisco Systems, an international technology solutions firm, has interconnected the Nairobi and Mombasa courts of appeal.

This is part of the ongoing automation and online interconnection process within the Government.This essentially means that backlog of cases and the need for judges to roam the country to listen to lawyers will be a thing of the past.The Court of Appeal is situated in Nairobi, but it periodically holds its sessions in Mombasa, Kisumu, Nakuru, Nyeri and Eldoret. It’s estimated that the sessions, commonly known as circuits, cost millions of shillings annually but this is bound to change.

Dr Bitange Ndemo, whose Ministry of Information is spearheading the changes in conjunction with Cisco, revealed that there are plans to extend use of the technology to lower courts to avoid the inconvenience of moving prisoners to magistrates’ courts just for mention of their cases.

"Prisoners have to be driven from prisons to courts even if it is just for a mention of their cases...with the tele-presence technology, magistrates will communicate with the accused via networked screens where the two (magistrate and prisoner) can see each other without shifting location," explained Ndemo.

Efficiency in Government

"This will save the Government in terms of cost of transporting prisoners, congestion in courts, and eradicate backlog of cases," added Ndemo.

Nokia launches new C3, C6 and E5 smartphones.

Nokia  today has launched the Nokia C3, Nokia C6 and Nokia E5 smartphones which have been specifically designed to put better messaging and social networking tools in the hands of more people around the world, at affordable prices. These new handsets feature full QWERTY keyboards, and enable access to a range of different email accounts, IM communities and social networks.Kindle Wireless Reading Device, Free 3G + Wi-Fi, 6" Display, Graphite, 3G Works Globally - Latest Generation

“Our messaging device range is very successful,” said Anssi Vanjoki, Nokia’s Head of Markets. “Services that provide easy access to the world’s consumer and corporate email and instant messaging are really popular on our QWERTY smartphones such as the Nokia E71 and Nokia E63. People want the best messaging and social networking experience on an affordable device, whether it’s sending a simple text or instant message, an email, or a direct message from their Twitter account. The Nokia C3, Nokia C6 and Nokia E5 are made for just that.”

IIEC launches electronic voter registration (EVR) pilot in Kenya.

In the latest amazing news from ILEC as of the 12th of April 2010 to the 21st may 2010, Kenya’s Interim Independent Electoral Commission (IIEC)  will register voters electronically for the first time ever in 18 selected constituencies. The pilot will cover the 18 constituencies of Kamkunji, Langata, Mvita, Malindi, Dujis, Wajira East, Isiolo South, Imenti Central, Mbooni, Nyeri Town, Kikuyu, Eldoret North, Nakuru Town, Ainamoi, Ikolomani, Webuye, Kisumu Town West and Bonchari. The Electronic Voter Registration (EVR) process will also cover over 1,400 registration centers and approximately 1.8 million voters details will be captured.

EVR uses biometrics for both face recognition and fingerprint using a special camera and a thumb print reader. Therefore, EVR is able to accurately identify registered voters which will be key in eliminating cases of voter fraud during elections. Apart from being highly accurate, the EVR system is faster and more efficient than the current manual voter registration process in place. However, the requirements for EVR remain the same as the manual process meaning that a valid ID card or Passport are still needed.

Nokia and the University of Nairobi launch Innovation Labs.

This has to be one of the most exciting developments for Kenya in regards to developing world-class mobile software services and products! Earlier today, Nokia Research Centre Africa (NRC-Africa) and the University of Nairobi’s School of Computing & Informatics (SCI) jointly launched a Research and Sub-contracting Lab as well as a Usability Lab at the Chiromo Campus.

This exciting initiative is the culmination of a strategic partnership between NRC-Africa and SCI which has been facilitated through funding from Nokia to build student capacity at SCI, through the SUCA project. This has also included the training of two SCI staff members in Finland on software sub-contracting management including ICT project management.

The purpose of these two labs is to enable the University of Nairobi to to:

    * Provide training to students, and local software development houses on ICT Project Management, Subcontracting Best Practices
    * Undertake contracted software application and prototype development
    * Undertake Academia research and contracted research
    * Conduct usability testing/evaluation both for in-house developed software and contracted

Written by Moses kemibaro

Technology can curb money laundering - Infrasoft expert.

Kenyan banks have been urged to employ latest technology to fight money laundering.

Speaking ahead of an Anti-money laundering conference scheduled for Thursday in Nairobi, Infrasoft Technologies Limited Managing Director, Hanuman Tripathi said human labour alone cannot detect the many often-veiled suspicious transactions in banks.

Over 70 bank officials in Kenya will participate at the conference to discuss the latest anti-money laundering technologies to employ in curbing the vice as well as share experiences and expertise.

Money laundering is a process in which the origin of funds generated by illegal means such as drug trafficking, gun smuggling, terrorism and corruption is concealed.

“Adoption of global processes, rules, regulations and technology towards Prevention of Money Laundering will integrate Kenya with the global trade faster, will improve Kenya’s rating as a low risk country and will foster more attractive trade and investment opportunities for the country,” he said.

The story at a glance

-The regulation to curb money laundering is as old as late 70s in most developed countries.

-The International Monetary Fund puts the aggregate size of money laundering in the world between $725 billion (Sh56.5 trillion) and $1.8 trillion (Sh140.4 trillion).

-The fraud is effected by passing the proceedings secretly through legitimate business channels by means of bank deposits, investments, or transfers from one place (or person) to another.

-Under the new law, those found guilty of the offence of money laundering will serve a jail term not exceeding seven years, or a fine not exceeding Sh2.5 million, or both.

Written by James Ratemo