Kioneki Profile picture
thoughts about pesa, the people and digital economy of East Africa. curated by Michael Kimani and friends. Prone to excesses. buyer beware
Tchunche Hermann Profile picture 1 added to My Authors
30 Jun
Overview: African Fintech Wallet Ecosystem Overview [a thread ]
Black in mobile money and bank agents. They are responsible for Cash in and Cash out on the ground. Converting you cash to emoney, or emoney back to cash.

Sometimes agents are also bank agents for cash in to bank money or cashing out bank money via card or app
Bank branches also let you cash in and cash out bank money from your account. higher limits because it is a bank
Read 18 tweets
26 Feb
Has anyone thought about mapping how a corona virus outbreak in Kenya could impact biashara and trade/agriculture supply chains?
Read 136 tweets
16 Feb
As a Fintech company in Kenya 🇰🇪 you have to be wary of Banks 🏦

Kenyan banks typically let startups experiment with different products, create the market and then they swoop in and launch similar products /n
For example I captured this Lipa pole pole product by KCB bank yesterday at an Apple store

Some form of lending/hire purchase for electronic and retail items
KCB bank also has a similar partnership with retailer Choppies Kenya 'Lipa Kidogo Kidogo' pictured here
Read 12 tweets
24 Nov 19
Thread:

The history of Mpesa from concept inception in 2005 to December 2008 to 2015 when virtual currency finservices, like Bitcoin Blockchain, emerged to take on Mpesa

It highlights how regulators respond to new technology

History never repeats itself, but it rhymes
August 2006

Safaricom approaches the Central Bank of Kenya
regarding M-Pesa
September 2006

The Central Bank of Kenya requests further information
from Safaricom regardning Mpesa
Read 27 tweets
31 Aug 19
Apparently Safaricom has quietly collapsed its innovation unit Safaricom Alpha back into the mainstream company and a good number of the team has already departed

Alpha was struggling to build a payments integrated messenger app 😆/n
Safaricom alpha was trying to innovate a new product for its mother company Safaricom

The product was a messaging app, Bonga chat, integrated with Mpesa so you could send messages and money (think Venmo, Wechat) /1
“one of the innovation center’s first products “as a messenger solution with full payment integration to better support the kind of social patterns that our customers are already using informally.” techcrunch.com/2017/10/18/saf… /3
Read 13 tweets
6 Apr 19
I find it interesting that in one half of this transaction is considered 'cheating' , while the other half considers it gigs/freelancing/job creation opportunities 1/
Confession

First online job i ever got was this type of job.
2nd year at Uni armed with laptop and free internet.
2009/2010
I was an early adopter, now the market is crowded

Good money! Upto $500 a month 2/
I was smart enough to figure out what this was.
Developed / developing world dichotomy

So strategy was, only pick jobs where the assignments are topics I am interested in

So i learn while earning

Also a great opportunity to work on my writing and research skills /3
Read 35 tweets
23 Jan 19
"Fully 38% of smallholder farmers are youth aged 16-34 years, according to a Comparative Analysis of Smallholder Farmers in Kenya, Zambia, and Tanzania conducted by AFA with Nathan Associates." 1/
"Young people are technologically engaged, but they need help migrating from the subsistence-style farming of their parents to a more productive approach to farming as a business." /2
"The review showed that young farmers face tighter time constraints than older adults and have greater difficulty accessing land, financing, practical skills, markets, inputs, and input-specific extension services." /3
Read 8 tweets
22 Oct 18
Looking at Kenya's Capital market transition from paper share certificates to > immobilized electronic record form to > de-materialized form housed by the Central Depository Service Corporation (CDSC) has some lesson for transition physical records and assets to blockchain 1/
First here is a list of Financial Intermediaries in Kenya's Capital Markets /2
Second, here is a list of participants involved in the Clearance and Settlement of Securities in Kenya 3/
Read 20 tweets
12 Oct 18
People forget that the next generation of mama mbogas and boda boda people and taxi drivers and the whole of informal sector will be educated upto college/university level.

They'll be digital natives.
They'll be exposed to global trends 1/
The early signs of this shift are evident now

Young graduates leaving school and straight into informal sector

Formal employees quitting 9-5 jobs to go into biashara

For example Met a lady who quit her job to sell bags from mitumba via social media. 2/
In the near future matatu touts will be educated, on the same platforms as everyone else (fb, whatsapp, mobile phone, mpesa, Instagram)

Nairobi's street hawkers will be educated too and on the same platforms as you and I

Why does this matter ? /3
Read 15 tweets
4 Oct 18
Here is a useful stack to think about blockchain/DLT/ "whatever you want to call it"

layer 1 - 4 : all the technical stuff for devs
layer 5: governance
layer 6 & 7 : what average person calls "use cases"

source: Financial Cryptography in 7 Layers by Ian Grigg 1998 1/
Right no, a lot of the activity is at the bottom layers 1 - 4

these are the chain wars POW vs POS vs DPOS vs "whatever else"
these are the "private" vs "public" / permissioned vs permissionless
these are the Bitcoin vs Bitcoin cash/ Ethereum vs EOS

technical jargon area 2/
Right now layer 5 is becoming a hot topic

How do we resolve issues that have nothing to do with logic? eg threat of theft or abuse exists from parties who are trusted to manage the system.? This problem can be overcome with a wide variety of techniques ie governance /3
Read 7 tweets
2 Oct 18
The Kenyan Tax Authority now wants to track individual mobile money and bank transactions in an effort to raise more tax from as many people as possible. kenyans.co.ke/news/33631-kra…
"Kenya Revenue Authority (KRA) plans to acquire Kenyans' financial data in order to try and match the amount and volume of bank transactions to their respective holder’s profession such as doctors, teachers and even informal sector players like transport Industry and suppliers."
"According to the Authority, only 4 million people in a country of 18 million eligible voters regularly pay taxes and so they are seeking to raise Ksh 60 billion from an additional 0.5 million Kenyans."
Read 3 tweets
1 Oct 18
Guys

Before dismissing 'mitumba' second hand clothes please realize there is a whole value chain that employs people in Kenya 🇰🇪 and east africa

Young men and women in the business of trade and service supporting ecosystem 1/
If you want to understand how it all works

Take 3 weeks out of your job, fo to gikomba talk to as many traders as you can (in depth)

Follow the trail
Follow the money 2/
What you'll find is mitumba bales that go all across Kenya

As far as Busia, ukambani, rwanda, botswana, tanzania etc

3/
Read 10 tweets
30 Sep 18
Money is a relationship between people masquerading as a relationship between things -Marx
"On the 30th of December 1919, Colonel Amery, the British Acting Secretary of State for the Colonies, approved the establishment of the East African Currency Board (EACB)"
"Yet the EACB, attempting to replace the Indian rupee as the currency in use in the colonial East African territories, originated in crisis and went on to preside over considerable
chaos in markedly inauspicious circumstances."
Read 4 tweets
29 Sep 18
Day 2 Taita hills sanctuary site seeing

Elephants
Zebras
Buffalos
Impalas
Giraffes
Buffalos
Elephants
Read 3 tweets
29 Sep 18
Currency is not as sacred as we've led to believe

The currency of Kenya is less than 70 years old

On a historical timeline, present form of currency is a bleep 1/
In just 100 years, Kenya has had

An east african currency, indian rupee and currency of Kenya as legal tender

Today we're using airtime currency, private money in the form of mpesa electronic money 2/
So think about this before rushing to dismiss any possibility of cryptocurrency like bitcoin/bitcoin cash taking off in any meaningful form in mainstream value exchange 3/
Read 9 tweets
26 Sep 18
What is a Smart Contract?
"Vinay worked on starting the smart contract court system called Mattereum, which creates smart contracts with the legal force of natural language contracts. Mattereum is a crypto court that will function as commercial arbitrator in a company dispute. "
"For the future, Vinay thinks there will be a very strong regulation regarding anonymous currencies and the tokenization of new classes of property rights."
Read 7 tweets
23 Sep 18
April 2006

"One of the recurring patterns I’ve been seeing of late is how mobile phones – not just the handset, but the system as a whole, have become drivers of innovation in emerging economies."
"Not just in India or China; this phenomena of the handphone – freed from the shackles of state sponsored infrastructure required for landlines in the majority of these developing nations –"
"has demonstrated its effect in improving the micro economy and providing opportunities for the entrepreneurially minded in hitherto backward regions around the world"
Read 3 tweets
21 Sep 18
I was going to read this until the author said

"There is no single person in existence who had a problem they wanted to solve, discovered that an available blockchain solution was the best way to solve it, and therefore became a blockchain enthusiast."

Then i stopped reading 1/
If you are going to write a topic

Please pick a region and country and address your article to a specific audience

First world problems =! Third world problems

Its unfair to generlaize 2/
5 years ago i turned into a cryptocurrency enthusiast because i ran into a real world problem that could now be solved by bitcoin's blockchain

Which was this problem? /3
Read 5 tweets
28 Aug 18
Im going to make a thread about why Digital Lenders should look at chamas and social savings as a new opportunity for digital financial products /n #CISConference2018
Digital lenders look at lenders from one lens - that of an individuals.

Its why their emphasis is skewed on collecting more data from individuals

Mobile phone
Mpesa
Airtime habits
Data bundle habits
SIM card data etc /2
Yet in the real world Kenya people exist as individuals AND as individuals in groups ie Chamas, social savings groups, communities, social networks (online/offline)

This is V significant for a market like Kenya and arguably East Africa /3
Read 17 tweets
24 Aug 18
"The next use case for blockchains could be serving as the backbone for a decentralized consumer trust network."
"Today, banks do a very simple low-information version of this already. They aggregate the trust of depositors, and then make loans out on their behalf.

But a peer-to-peer system of trust could be far more efficient than the traditional banking system."
"Imagine a platform on which you had hundreds of people who trusted you financially, and in return trusted hundreds of other people (and each of those people had hundreds of their own relationships). It would change how you measure credit, extend loans, borrow money, etc."
Read 3 tweets
24 Aug 18
This is an interesting story.

I have 2 thoughts to share about this
1 is regarding the need to ask for permission to use new technology

"Permission" is at odds with the whole point of what's supposed to be disruptive technology

While banks might have to ask for permission

Fintechs and entrepreneurs dont have to.
We have enough permissionless blockchains available that are free and open to use.

Permissioned distributed ledgers
Permissionless distributed ledgers

Which would you rather use?
Read 6 tweets