NGO accused of supplying illegal tender. By LINAH BENYAWA KENYA: Investigators have questioned a foreign official of an NGO operating in Mombasa over the making of cash coupons now used by some residents as a medium of exchange. The team from Central Bank of Kenya (CBK) in Nairobi on Thursday quizzed a Mr Will Ruddick on the “Bangla Pesa” which is reportedly being used in Bangladesh area in Changamwe. Police claim that the NGO, Koru Kenya, which gives the coupons to its members, is not registered while CBK officials believe the medium is a replacement of the Kenyan currency fearing it can destabilise the economy. These vouchers are said to have been in circulation for weeks following their launch on May 11 and are popularly among poor slum dwellers. Five arrested Apart from Ruddick, five people were arrested following the supply, distribution and use of the vouchers that resemble currency notes. “Police received information that money which was not similar to Kenyan legal tender was in circulation and used in trading.
Guest post: The case for digital legal tender. Why central banks should take charge of their digital currencies. The Economist explains: Why does Kenya lead the world in mobile money? PAYING for a taxi ride using your mobile phone is easier in Nairobi than it is in New York, thanks to Kenya’s world-leading mobile-money system, M-PESA. Launched in 2007 by Safaricom, the country’s largest mobile-network operator, it is now used by over 17m Kenyans, equivalent to more than two-thirds of the adult population; around 25% of the country’s gross national product flows through it.
M-PESA lets people transfer cash using their phones, and is by far the most successful scheme of its type on earth. Why does Kenya lead the world in mobile money? M-PESA was originally designed as a system to allow microfinance-loan repayments to be made by phone, reducing the costs associated with handling cash and thus making possible lower interest rates. But after pilot testing it was broadened to become a general money-transfer scheme. Dozens of mobile-money systems have been launched, so why has Kenya’s been the most successful?
How Kenya became a world leader for mobile money | AfricaCan End Poverty. What if anyone owning a cell-phone, whether rich or poor, also had access to financial services with the ability to save and send money safely, no matter where they are located? This is not science fiction; in fact it is already happening in Kenya, which has become the world’s market leader in mobile money. Today, Kenya has more cell-phone subscriptions than adult citizens and more than 80 percent of those with a cell phone also use “mobile money” (or “M-PESA” which is very different from “mobile banking” as Michael Joseph–the former Safaricom CEO, and the man behind that revolution—can explain passionately!). Internet access is also increasing rapidly, even though many are complaining about poor service by some operators. Within the next two years, Kenya could become one of the most connected, and modern economies in the developing world, and a unique case among the world’s poorer countries, that have an average annual income of below US$ 1000 per capita (see figure).
M-euro, a lesson in money supply from Kenya. More on M-pesa and e-money.