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Safaricom and Pesalink Address Merger Speculations Amid CBK’s Fast Payment System Plans

Tuvuti Editorial Team
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Safaricom and Pesalink Address Merger Speculations Amid CBK’s Fast Payment System Plans

Mpesa and Pesalink merger talks have generated lots of buzz. But Safaricom and Integrated Payment Services Limited (IPSL) the company that runs Pesalink have clarified that there are no talks going on. This as the Central Bank of Kenya (CBK) is set to launch a new Fast Payment System (FPS) that will connect payment services across banks and financial institutions and allow customers to send money across networks.

The Safaricom-Pesalink Partnership

The proposed merger was contained in a joint proposal to CBK by Safaricom and the Kenya Bankers Association (KBA). It would have made transactions between mobile wallets and bank accounts smoother and cheaper for users.

  • Safaricom’s Position: Safaricom CEO Peter Ndegwa said the company is not considering such a partnership at the moment but promised to inform customers if that changes.
  • Pesalink’s Position: Gituku Kirika, CEO of IPSL said Pesalink is open to partnerships with various financial and technology players. But no details on a merger with M-Pesa for now.

Central Bank of Kenya’s Fast Payment System (FPS)

The CBK’s FPS was announced in 2024 and is aimed at transforming Kenya’s payment space by creating a single platform for money transfers.

Key Features of FPS:

  • Connects all banks and financial institutions.
  • Allows 24/7 money transfers across all networks.
  • Reduces multiple intermediaries and potentially lower costs.

KBA has welcomed the initiative with CEO Raimond Molenje saying since 2017 the association has invested in IPSL which operates Pesalink—an ISO 20022 certified instant payment switch.

Advantages of a Safaricom-Pesalink Partnership

Although this is speculative for now, a M-Pesa and Pesalink merger could bring:

  1. Cheaper transactions: M-Pesa to bank account transaction fees could be slashed.
  2. Interoperability: Customers can move money between mobile wallets and bank accounts.
  3. Financial inclusion: More access to underserved communities by connecting financial platforms.

Techies think this could compete with the CBK’s FPS and be good for both consumers and businesses.

Next

While the CBK’s FPS will connect the country, Safaricom and Pesalink will continue to explore ways to improve financial services. Since both platforms are interoperable, the possibility of a single system for Kenya’s digital economy is high.

As the FPS rolls out and partnerships mature, Kenya’s financial space will change and benefit consumers and put the country at the forefront of fintech.

Kenya’s Startup Bill: A Game Changer for Innovation and Entrepreneurship

Tuvuti Editorial Team
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Kenya’s Startup Bill: A Game Changer for Innovation and Entrepreneurship

Kenya’s Startup Bill is waiting for Presidential assent and will provide a framework for innovation, support for startups and solidify Kenya as a global innovation hub. But startups that don’t meet its requirements will be excluded from registration and incubation programs.

Requirements for Startups

To be a startup under the proposed law you must:

  • Be headquartered in Kenya: Your main office must be in the country.
  • No distribution of profits: You shouldn’t distribute profits so that resources are reinvested for growth.
  • Ownership: Must be 100% owned by one or more Kenyan citizens.
  • Research focused: At least 15% of expenses must go towards research and development.

Startups that have been in existence for more than three years and those formed through mergers, acquisitions, splits or restructuring of existing companies are not eligible for registration or incubation under this bill.

New Incentives and Support

The bill has fiscal and non-fiscal incentives for startups, incubators and investors including:

  • Tax reliefs, grants and subsidies to reduce the burden on startups.
  • Government procurement opportunities to grow the business.
  • Fast tracked intellectual property (IP) registration through the Kenya Industrial Property Institute to protect innovations.

The Kenya National Innovation Agency and Kenya Industrial Estates will also play a key role in innovation, creation of a national incubation framework and linking startups with universities and the private sector.

Startup Fund and Compliance

Startup Fund will be financed through government appropriations, grants and donations and will provide resources to eligible startups.

Registered startups will be required to comply with:

  • Meet growth targets in human resource, assets and annual turnover.
  • Keep proper accounts and submit financial statements.
  • Inform the overseeing agency of any structural or operational changes.

Failure to comply with these requirements will result in deregistration after a compliance notice is issued.

Benefits to Kenya’s Startup Ecosystem

The bill will nurture the startup ecosystem through innovation and entrepreneurship support. Key highlights include:

  • Fast track Innovation: By fast tracking IP registration and academia-industry collaboration.
  • Young Innovators: Create a pathway for young entrepreneurs to turn ideas into sustainable businesses.
  • Attract Investment: Offer fiscal incentives to investors and position Kenya as the innovation hub.

Irene Mayaka one of the proponents of the bill said the law will give young innovators opportunity to grow their ideas into businesses and make Kenya a global innovation leader.

Challenges for Startups

While the bill has many benefits, it also has challenges:

  • Startups that are more than three years old or don’t meet research expenditure requirements will be excluded.
  • The no distribution of profits rule will deter startups from seeking external investment from profit oriented venture capitalists.

Additionally, the compliance demands and stringent growth targets may create barriers for some startups.

Kabogo Pushes for Full Digitalisation of Government Records to Boost Efficiency

Tuvuti Editorial Team
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Kabogo Pushes for Full Digitalisation of Government Records to Boost Efficiency

The Ministry of Information, Communications and Digital Economy under Cabinet Secretary William Kabogo has launched an ambitious plan to digitize all government records. This will boost service delivery, curb corruption and drive economic growth.

Whole of Government Approach

During a meeting with Heads of Departments and Divisions from the State Department of ICT, CS Kabogo said a coordinated approach across all ministries and agencies is needed to achieve full digitization. He said the Ministry of ICT will lead the way since technology is the backbone of all government operations.

He said in the past ministries have worked in isolation when introducing digital systems and that will not happen again. To address this he promised to stick to the guidelines and a single approach to ensure seamless integration across all departments.

Key Objectives and Timeline

Kabogo has given his ministry 90 days to go paperless in all communications including letters and memos. His ultimate goal is to have all government operations digital by the end of his term.

The digitization effort will:

  1. Eliminate Manual Records: All ministries and departments will digitize their records and automate backend processes.
  2. Increase Transparency: By making information available, the government will curb corruption and increase public accountability.
  3. Improve Efficiency: A digital system will enable real time data sharing, decision making and reduce delays in service delivery.

Fighting Corruption Through Technology

Kabogo said digitalization will make it easier for oversight bodies like the Controller of Budget and the Auditor General to track expenditure in real time. This will address issues of pending bills and ensure alignment between expenditure plans and available budgets.

He also suggested a “corruption fighting trophy” to be awarded to individuals and departments that are visible in promoting integrity in government operations.

Ministry of Lands

As part of the digitization efforts, Kabogo said Ksh3.9 billion has already been spent on digitizing records in the Ministry of Lands. Documents have been scanned and they are in the process of migrating to digital system and will not create new physical records.

ICT and Economic Growth

Principal Secretary Eng. John Tanui said ICT is key in the government’s Bottom-Up Economic Transformation Agenda (BETA). He said the digital economy is growing 2.5 times faster than the physical economy and that connectivity and digital platforms will boost government performance.

Key areas of focus in the digital agenda are:

  • 1,450 digital hubs across Kenya.
  • Cybersecurity, misinformation and disinformation.
  • Digitization in ministries like Lands to get significant operational benefits.

Existing Challenges

Tanui said while some ministries have digitized, many have only scanned documents and not transitioned to full digital process. This has resulted to manual records being generated and undermining the benefits of digitization.

To resolve this, the government aims to:

  • Ensure complete migration to digital systems.
  • Enhance collaboration across ministries and agencies.
  • Scale up successful projects like the Lands Ministry’s digital system across other departments.

Glovo Chooses Nairobi for Global Real-Time Operations Centre

Tuvuti Editorial Team
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Glovo Chooses Nairobi for Global Real-Time Operations Centre

Glovo has launched its biggest real-time operations (RTO) centre in Nairobi, which will oversee its operations in 23 countries. This solidifies Nairobi as the innovation and digital economy capital of Africa.

Why Nairobi?

Nairobi was chosen because of its tech ecosystem, Gen Z talent and strategic location as a gateway to Africa. The centre will have over 160 agents, operating 24/7, making it Glovo’s biggest hub globally.

RTO Centre functions

The Nairobi hub will do:

  1. Operational Efficiency: Streamline Glovo’s logistics and delivery services globally.
  2. Compliance Enforcement: Ensure Glovo’s operations comply with regulations across multiple regions.
  3. Rider Onboarding: Support rider recruitment and integration in different countries.
  4. Localized Language Support: Support in Arabic, French and other languages for key markets in the Middle East, Africa and Europe.

Boost to Kenya’s digital economy

Caroline Mutuku, Glovo Kenya GM, said the hub will showcase Kenya’s talent and innovation capacity, especially Gen Z.

Chidera Akwuba, Glovo’s Head of Public and Government Relations for Sub-Saharan Africa, said the centre will contribute to long term economic growth by:

  • Supporting small and medium enterprises (SMEs).
  • Working with Kenyan businesses and stakeholders.
  • Inclusive development initiatives for the local economy.

The centre fits into Glovo’s overall vision of sustainable growth, using Nairobi’s innovation ecosystem to deliver social and economic impact.

Glovo’s market leadership in Kenya

A 2024 report by the Competition Authority of Kenya (CAK) ranked Glovo as the number one digital delivery platform in Kenya with 33% market share in food and grocery delivery. This solidifies Glovo as the pioneer multi-category platform in Southern and Eastern Europe, Middle East and Africa.

A game changer

Abubakar Hassan, Investment promotion PS, called the RTO centre a model of innovation for Kenya’s digitalisation. The hub shows how global companies like Glovo are putting their money on Kenya’s talent and business friendly environment to grow globally.

Kenya’s Broadcasting Licenses Double in Three Months, Reflecting Sector Growth and Challenges

Tuvuti Editorial Team
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Kenya’s Broadcasting Licenses Double in Three Months, Reflecting Sector Growth and Challenges

The numbers are showing a big growth in broadcasting licenses issued by the Communications Authority of Kenya (CA). 37 licenses in 3 months is a big deal in the media space. 684 service providers as of September 2024, the industry is growing but not all are active—186 are inactive.

The breakdown of broadcasting services shows the various areas of investment. Licenses issued in the quarter were commercial FM radio, community FM radio, free-to-air (FTA) TV, public FTA radio and TV broadcasting. The report also shows a decline in broadcasting service subscriptions, down 4% to 6.1 million. But DTT is growing, up 0.53% to 4.5 million subscriptions. Affordability is the reason. DTH is down 15.2% and cable is growing but still the least popular due to high infrastructure costs.

Content compliance is mixed. Local content quota is down to 88.5% and programming guidelines for sensitive areas like children’s content and religious programming is still 100%. Overall TV broadcasting code compliance is up from 93.1% to 94.7%. This snapshot of the Kenyan broadcasting industry shows its growth and dynamism with increased licensing, changing consumer behavior and regulatory enforcement. The numbers show that investment and content standards must continue to grow and expand media services.

Starlink Doubles Market Share in Kenya, Disrupts Internet Sector with Aggressive Growth

Tuvuti Editorial Team
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Starlink Doubles Market Share in Kenya, Disrupts Internet Sector with Aggressive Growth

Starlink has grown so fast in Kenya in just a few months. According to the Communications Authority of Kenya (CA), Starlink’s market share went from 0.5% in June 2024 to 1.1% by September 2024 with 8,723 new users added during that period. That’s more than the total number of users added in the past year.

Starlink’s Rise to the Top

The company has moved three positions in the market share leaderboard and has surpassed Liquid Telecommunications Kenya and Vijiji Connect Limited to tie with Dimension Data Solutions East Africa Limited at position 7. This growth is in line with the overall growth in satellite internet in Kenya which more than doubled in three months from 8,324 in June to 17,042 in September with a growth rate of 104.7%. Starlink’s aggressive customer acquisition campaigns including affordable equipment rental options was key to this.

Internet Capacity

In addition to subscription growth, Kenya’s satellite internet capacity has also grown. Utilised capacity grew by 152.8% to 2,124.438 Gbps in September from 840.448 Gbps in June. This is due to Starlink’s increasing presence in the Kenyan market.

Market Trends

Safaricom is still the biggest player in Kenya’s fixed internet market with 36.6% market share, while Jamii Telecommunications Ltd (24.4%) and Zuku (16.8%) have had mixed results. Zuku’s share has declined from 17.5% in June to 16.8% in September.

Conclusion

Since Starlink launched in Kenya in July 2023, the industry has been shaken. Expect this competition to change the game as providers fight for a growing user base.

This is big for Starlink’s focus on high speed internet in unserved areas and redefining internet access in Kenya.

A Step-by-Step Guide To Help You Sell Your Property In the Right Way

Tuvuti Editorial Team
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A Step-by-Step Guide To Help You Sell Your Property In the Right Way

Selling a property doesn’t have to be a drawn-out or stressful process. With the right approach, you can secure a buyer quickly while ensuring you get a fair price. The following guide goes through the key steps to help you sell your property efficiently, combining preparation, strategic marketing, and expert tools.

Step 1: Determine Your Property’s Value

The first step in any property sale is understanding how much your home is worth. Accurately pricing your property is crucial for attracting serious buyers. Overpricing can deter interest, while underpricing risks undervaluing your biggest asset.

Start with an online tool like purple bricks valuation, which provides a fast, reliable estimate based on market trends and properties in your area. This gives you a strong foundation for setting a competitive asking price.

Step 2: Prepare Your Home for Sale

First impressions are everything. Before listing your property, take the time to make it as appealing as possible to potential buyers.

  • Declutter and Clean: Clear out unnecessary items to make your space feel larger and more inviting. Deep clean every room, including less noticeable areas like baseboards and windows.
  • Make Small Repairs: Fix minor issues like leaky taps, squeaky doors, or chipped paint. These small improvements can have a big impact.
  • Stage Key Areas: Arrange furniture and decor to showcase your home’s best features. A cozy living room or an inviting kitchen can create a lasting impression.

Step 3: Take Advantage of Professional Marketing

The right marketing is the top way to reach the right buyers quickly. High-quality visuals and comprehensive property details will make your listing stand out.

  • Hire a Professional Photographer: Eye-catching photos can draw more attention to your property online.
  • Include Virtual Tours: Virtual viewings are increasingly popular, offering buyers a convenient way to explore your home from anywhere.
  • Write a Compelling Description: Highlight unique selling points such as location, recent renovations, or outdoor spaces.

Step 4: List Strategically

Timing is everything when it comes to selling a property. Research the best times to list in your area, as seasonal demand can vary. For example, spring and early summer are often peak times in the housing market.

Work with an estate agent who understands your local market dynamics and can position your property effectively to attract buyers.

Step 5: Be Flexible with Viewings

Accommodating potential buyers is a key part of selling quickly. Offer flexible viewing times, such as evenings and weekends, to cater to busy schedules.

Make sure your home is always viewing-ready. Keep it clean, well lit, and ventilated so that buyers see it at its best every time they visit.

Step 6: Price Competitively and Be Open to Negotiation

A well-priced property will attract offers quickly. Use your valuation as a starting point but be prepared to adjust based on buyer feedback and the market.

When offers come in, evaluate them carefully. Consider not only the price but also the buyer’s financial position and proposed timeline. A slightly lower offer from a cash buyer, for example, may result in a faster and more straightforward transaction.

Step 7: Work with Trusted Professionals

Having the right team can make all the difference. A skilled estate agent will handle marketing, viewings, and negotiations, while a reliable conveyancer will ensure that the legal side runs smoothly. Look for professionals with strong reviews, a solid track record, and a clear understanding of your local market.

Step 8: Streamline the Legal Process

Once you accept an offer, the legal process begins. Stay proactive by preparing necessary documents in advance, such as title deeds and property certificates.

Keep open communication with your conveyancer to address any issues quickly, ensuring the sale proceeds without unnecessary delays.

Step 9: Plan Your Next Steps

While selling your current property, it’s important to prepare for your next move. Whether you’re buying a new home or renting temporarily, having a clear plan will reduce stress and help you transition smoothly.

Kenya Kwanza’s Push for a Fast, Interoperable Payment System to Rival M-Pesa

Tuvuti Editorial Team
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Kenya Kwanza’s Push for a Fast, Interoperable Payment System to Rival M-Pesa

The Kenya Kwanza government is building on its digital finance momentum by developing a fast, interoperable payment system to boost financial inclusion and reduce M-Pesa dependence. This is in line with the National Payment Strategy (2022-2025) and the upcoming National Digital Finance Policy to modernise and expand Kenya’s payment landscape.

Changes in Kenya’s National Payments System

Since then Kenya’s National Payments System (NPS) has had:

  • A national payment infrastructure
  • System automation and upgrades.
  • Mobile money transactions grew to Sh6.5 trillion in the first 9 months of 2024, 13.2% up from 2023.

Building on this, the government is working with the Central Bank of Kenya (CBK) and industry players to launch a fast payment system that will consolidate all retail payment services from banks and non-bank providers.

Features of the Fast Payment System

The new system will have:

  • Interoperability: Seamless transactions across different payment platforms, inclusivity.
  • Strong Governance Framework: The system will be secure, efficient and global best practice.
  • Public-Private Partnerships: Government and private sector collaboration for infrastructure development.
  • Innovation and Financial Inclusion: Reduce transaction costs, make it affordable and encourage digital finance innovation.

Taming M-Pesa

M-Pesa has revolutionised Kenya’s financial landscape by making mobile money accessible but its dominance has raised:

  • Competition: A more balanced ecosystem to ensure fair competition.
  • Inclusion: Services to underserved segments and regions.

The government’s interoperable system is in line with its vision for a competitive, accessible and inclusive financial space.

Financial Inclusion and Economic Growth

The fast payment system will:

  • Increase access to financial services for low income earners.
  • Encourage fintech innovation by creating a level playing field for new entrants.
  • Reduce transaction costs, boost economic activity.
  • Give Kenya’s growing digital economy stability.

Next Step

The William Ruto government is keen on using technology to drive growth. By speeding up this payment system Kenya will maintain its digital finance leadership and address the gaps in inclusion and competition.

As the CBK finalises the framework and the technology, this will change Kenya’s financial landscape, a more efficient, fair and innovation friendly space.

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