Thread by @dnjaga1

Something happened during Kibaki’s tenure that would later transform Kenya’s business environment and become a critical economic platform.
That small innovation was called MPESA.
It may turn out to be Kibaki’s greatest but UNINTENDED legacy

Someone once said INVENTION IS THE MOTHER OF NECESSITY- corrupting the popular proverb which says the opposite.
MPESA was not a necessity before it came to our lives, it is a necessity only after it was invented, tried, and used by consumers.

I recall the speech to honour the founder of McDonalds fast foods.
It was stated he touched American life so much that “any student in America just wants to confirm wherever he goes for education THERE IS A GOOD HOSTEL AND A MCDONALD NEARBY.”

This can be said of MPESA. Any trader, any college student and their parent, any business person will be heard asking “HAPO KARIBU KUNA MPESA?”
MPESA has come to signify, business and better and easy life. Rarely does an innovation touch almost everybody in a county.

The question is, was MPESA because of Kibaki or inspite of Kibaki? My theory is that MPESA was not a coincidence of history.
We have MPESA because of Kibaki. Not by initiating it.
But because his government was too weak and indifferent to interfere with it

Kibaki started off his regime under a cloud of misfortunes. He fell ill quite early and his ability to speak was compromised then on. He lost vice President and a minister.
All while the complex coalition was still young and needed his full-time attention to prevent a fallout

Resultant atmosphere was one of confusion and a government a little out of touch with the national pulse.
Other factors being equal, these are the best conditions for private sector to thrive – that is where the government is weak and not meddling in everything people are doing

Would MPESA have come about under Moi government? I submit NO. It would neither have come to be under Uhuru government. See my reasons

Moi was invested in banking. Several banks were for long treated like community employment centres.

The same way Moi had obstructed the launching of mobile telephony to “protect jobs” in places like Posta, he would have killed MPESA to project KCB and KNB and TNB etc

Not just that Moi’s government was extremely petty and malicious and would control every major investment activity.
Stories abound of many companies that refused to set up base in Kenya because of official sabotage by powerful government cartels asking for bribes

MPESA would not have seen the day under Uhuru either. Kenyatta family is heavily invested in banking.

Besides, recent events have demonstrated that the family is extremely greedy and selfish. The term "crony capitalism" aptly describes Uhuru government. It cant conduce business

Not that Kibaki government was not alarmed by MPESA. The late John Michuki was acting finance minister.
He had directed the CBK to review MPESA and report to him.
MPESA was a little stigmatized in its formative stages bcos of this government suspicion

MPESA had started off as an assault on the banking sector. The Banks even called on the government “to intervene” wondering why Safaricom was allowed to compete with them when it is not licensed under the same regulations.

Why it carried the day was the widespread public embrace of MPESA.
And also the fact that, for all his weaknesses, Kibaki was not petty or malicious.
I support this article by @DavidNdii

nation.africa/kenya/blogs-op…

As a layman, I cannot discuss well the economic implications of MPESA. After the initial stages of conservative rollout, MPESA became confident and advanced its applications and services.
Integration with banking and shopping created so much convenience that we all cherish

We take it for granted today. That you can pay for goods in a Kitale shop from your phone in Nairobi.
That you can withdraw money from your bank and buy your daughter in college some lunch and send cash to the village all while seated in tour office.
Or just lying on your bed

The reason we can't feel the full impacts of MPESA is because the economy is just hurtling down.

One facet of an economy can only do so much when everything else is not working.
MPESA is about money transactions. If there is no business, we can’t appreciate it very much

I credit Kibaki government for MPESA. The government had nothing to do with it. But the indifference allowed one of the greatest innovations to take root which will continue to touch our national social and economic life
cnbcafrica.com/2017/mpesa-eco…

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