By Ronald Njoroge NAIROBI (Xinhua) --
Kenyan bankers’ mobile payment platform will be fully operational by
June, officials said on Monday, amid complaints that the country’s
banks are losing customers and revenues to popular mobile
Kenya Bankers Association (KBA) CEO Habil Olaka told a media
briefing in Nairobi that the platform that was launched in February
has so far enrolled 1 million customers.
“So far 23 out of the 43 operational banks have rolled out the
platform successfully to their clients so the platform should be
fully operational by June,” Olaka said when the KBA signed a
partnership agreement with the Kenya Community Development
The PesaLink digital platform will enable bank customers to
transfers funds to other bank accounts instantaneously from their
The CEO said that the digital system is part of a raft of
technologies that the banking sector is deploying in order to
increase their efficiency.
Last year, Kenya passed a law that capped the interest rate that
commercial banks could charge for loans.
The law has reportedly negatively impacted on the profitability of
the banking sector, forcing the sector to seek interventions to
reverse the decline of revenue.
Olaka said that the PesaLink will help to fend off competition from
the popular mobile money transfer systems.
Kenyan banks urged to embrace
NAIROBI (Xinhua) --
Kenya’s umbrella body of the banking industry is
encouraging its members to embrace the Chinese Yuan due to the
increasing importance of the Chinese economy globally, officials
said on Monday.
Kenya Bankers Association (KBA) CEO Habil Olaka told journalists in
Nairobi that China has become one of the biggest trading partners of
“As a result, Kenyan banks should facilitate the conversion of the
Chinese Yuan to the Kenya shilling in order to facilitate the growth
of the Sino-Kenyan trade,” Olaka said.
The bankers lobby is urging its 43 members as well as microfinance
banks to ensure that Chinese and Kenyan traders can access the
Previously, in order for Kenyan traders to buy goods from China,
they had to convert the Kenyan shilling to the foreign currency such
as the U.S. dollars and then convert the dollar to the Chinese Yuan
so that they can pay their Chinese supplier.
Olaka said that the process costs Kenyan traders a lot of fees in
terms of commission.
He noted that the convertibility of the Yuan into the local currency
will also ease the process of the Chinese community based in Kenya
in sending money back to their home country.
number of banks already have the Chinese Yuan available over their
Olaka noted that the easy convertibility of the Chinese Yuan in the
Kenya shilling is likely to boost the efficiency of the economy.