The Central Bank of Kenya has authorised Telkom Kenya’s entry into the mobile money transfer market. This follows the telco’s recent launch of its new mobile money platform dubbed T-Kash, which replacing Orange Money that was stopped in July 2017.
In a statement, CBK said the move authorise Telkom Kenya as a Payment Service Provider (PSP) is pursuant to the provisions of the National Payment Systems Act 2011 and the National Payment System Regulations, 2014, adding it had fulfilled all the stipulated authorisation requirements.
“The entry of Telkom Kenya Limited in the Mobile Financial Services space will provide alternative choices to Kenyans as well as enhance competition and innovation in the provision of Digital Financial Services,” said the apex bank.
Before the authorisation of Telkom Kenya, only Safaricom PLC (M-PESA) and Airtel Networks Ltd (Airtel Money) were allowed to transact mobile money transfers.
Telkom Kenya recently rebranded from Orange Kenya after Helios Investment Partners, a UK private equity firm, acquired a 60% stake from Orange Group.
While launching T-Kash, Telkom Kenya Chief Executive Officer Aldo Mareuse said they are offering a viable alternative mobile money service to their customers. “Value, convenience and security as well as reliability are at the core of our proposition,” he added.
Mareuse said 20,000 agents have been signed up to facilitate T-Kash transactions across the country. Telkom has also slashed the cost of its withdrawal transactions by Ksh 2 – from Ksh 32 to Ksh 30 – across its 19 transaction bands which range from Ksh 1 to Ksh 70,000. The maximum transaction value is Ksh 140,000.
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The telco has since retained Interswitch, the Africa-focused integrated electronic payments and commerce company, to develop and deploy App solutions that will hasten the speed at which Telkom Kenya customers are able to access services from their different financial providers.
“Customers are now embracing technology more and more in all aspects of their lives and the mobile phone plays a key role in this revolution. We as Interswitch, are proud to partner with the different stakeholders in this market as they navigate the Fintech age,” said Interswitch East Africa (K) CEO Mr Paul Mwaura Ndichu said.