Kenya leads Africa in mobile pay technology: report

Kenya leads the developing world in readiness to adopt mobile payment technology, according to a survey conducted by MasterCard.

The country's standing in the index published on Monday will enhance Kenya's global reputation as a leader in technological innovation.

"The success of M-Pesa has created an alternative payment network in Kenya, making it, in terms of sheer usage, one of the most advanced markets in the world," says a report accompanying the MasterCard index.

"The success of mobile payments in Kenya is remarkable and can serve as a blueprint for payments adoption in the rest of the emerging world."

Overall, Kenya ranks fourth among 34 countries surveyed.

It is "in the company of big, developed and integrated markets like the United States and Canada, and city-state powerhouses like Singapore," the report says.

Kenya finishes ahead of such tech-focused countries as South Korea, Japan, China and India.

Ironically, the MasterCard report observes, Kenya's success with mobile money transfers is attributable in part to "a lack of traditional infrastructure and alternative conventional payment media."

"Mobile suggested itself as a solution to a population deeply in need of a fast and secure method of payment," MasterCard says.

Noting that "M-Pesa is a closed loop," the report adds that there is considerable room for expansion of mobile payment technology in Kenya.

"They've shown the way globally, but the country itself is also ripe for a more flexible and accessible payments structure that leverages all types of payments and permits multilateral entry into a broader-based financial services and telecommunications infrastructure," the report says.

By KEVIN J KELLEY, NATION CORRESPONDENT

Shoe technology to charge cell phones

You can now charge your mobile phone from the sole of your shoe.

This will be good news for herdsmen, joggers and gym enthusiasts, since the more you walk or run, the more electricity your shoe will generate.

On Tuesday, this technology was among the innovations on show at the Science and Innovation Week taking place at the Kenyatta International Conference Centre in Nairobi.

Mr Anthony Mutua, 24, has developed an ultra-thin chip of crystals that generate electricity when put under pressure.

Through a process he has patented with the Kenya Industrial Property Institute, he is able to harvest this energy and turn it into electricity as one walks.

Mr Mutua, a graduate of Mombasa Polytechnic University College, explains that the chip is inserted inside the sole of any shoe, apart from bathroom slippers.

"The electricity is generated by the act of walking and running, and can be harvested in two ways."

One way is to charge the phone while still in motion through a thin extension cable that runs from the shoe to the pocket. 

"The other alternative, is to charge the phone immediately after a walk because the crystals have the capacity to store the electric energy," Mr Mutua explained.

The second option through a technology that is just about to go into mass production, he says, is likely to prove quite popular with people who want to charge a mobile phone for others as a commercial activity, since it can service several phones simultaneously.

To have your shoe fitted by Mr Mutua who operates within Nairobi's Central Business District, costs Sh3,800 and the technology comes with a two and a half year guarantee — but not if the shoe is stolen or lost.

"In case the shoe is worn out you can always transfer it to the new one."

Mr Mutua says the National Council of Science and Technology is in the process of funding his project for mass production of the chips.

"This and the possibility of a bigger market could eventually bring down the purchase price."

The development of Mr Mutua's prototype was funded to the tune of Sh500,000 by the science council.

According to Mr David Ngigi, a senior science secretary with the National Council for Science and Technology, the council is now planning to finance Mr Mutua so that he can commercialise his product.

"We have been financing the development of ideas to prototype levels, but because most innovators lack funds for commercialisation, this innovations never reach the market. So we are changing this," says Mr Ngigi.

By GATONYE GATHURA

Internet security system introduced

Access Kenya has introduced an authentication system to boost security of emails.

The firm's MD Kris Senanu said the Simple Mail Transfer Protocol Authentication is intended to address rising internet security concerns.

"Email hacking is a global problem and this technology protects our clients and other users on our network," he said.

Email account holders will be provided with unique usernames and passwords to access servers through the authentication system.

By Nation Media

Kenyan app that helps you confess to paying a bribe

Would you publicly come clean that you paid a bribe to get a service? Probably not. But a phone application customised for Kenya is making it easier for citizens to report bribery incidences across the country, anonymously.

I Paid a Bribe (IPaB) is a desktop, mobile web and SMS app that gives Kenyans a platform to share their experiences with bribery. Through a user-friendly interface, a user can post an incident where they had to pay a bribe because a public officer expressly asked for it or a situation where the officer asked for it but they refused to pay the bribe.

The app also allows users to report an incidence where no bribe was asked, and the service was delivered on time.

Since the launch of the website in December 2011, 630 bribery incidences worth Sh20 million have been posted on the website.

The police, municipal services, immigration and registration of persons and lands departments are the leading bribery hotspots as reported by citizens.

Interestingly, there are quite a high number of witness reports showing high bribery prevalence in the private sector, according to IPaB.

"Once a user files a bribe report on the site, the system takes it up automatically and edits out any names. IPaB does not target individuals but seeks to expose weaknesses in the system and advocate for them to be rectified," says Anthony Ragui, developer of IPaB.

After users send their experience, either through the IPaB website, mobile site or SMS, the story is published on the website after a 10 minute lag. Specific data from the story (county, amount paid and department) is logged in and added to the analytics.

"I paid a Bribe Kenya as a platform aims to get Kenyans to report and talk about the problem of corruption," says Ragui, who came up with idea after seeing a similar initiative in India.

A Transparency International (TI) report on East African Bribery Index revealed while a vast majority of Kenyans perceived Kenya as a corrupt county, only seven percent reported corruption incidences, probably for fear of victimisation.

Written by Ken Macharia for Capital Business

Mobile phones to be used to buy bonds

Kenyans will soon be able to buy government debt including Treasury Bills and bonds using their mobile phones, according to a project dubbed, 'Treasury Mobile Direct', launched by the World Bank and Central Bank.

The scheme aims to capitalise on the popularity and success of mobile money transfer services in the country.

According to data released by the Communications Commission of Kenya (CCK), the number of mobile money subscribers in the country stood at 18.9 million by April 2012, with money deposited through mobile phones amounting to Sh177 billion.

The project, still at pilot phase, will require potential investors to be registered as mobile money subscribers with the various operators in the country, who will open Central Depository System accounts for them.

"Today, any Kenyan can pay their electricity bill with the phone, and so will they be able to pay for bonds bought," said Mr Yira Mascaro, who leads the World Bank's financial and private sector development group in Nairobi, which is behind the initiative.

The scheme will help individuals cultivate a culture of savings and increase participation in the bond market, which is currently less than 3 per cent. 

The first phase will be rolled out to bank holders before being integrated with the unbanked.

By NATION CORRESPONDENT