THE Central Bank of Kenya turned down a plea from commercial banks' chief executives in 2007 to stop the spread of mobile money service M-Pesa. CBK governor Njuguna Ndung'u yesterday revealed that some commercial banks' CEO approached the banking regulator complaining that M-Pesa, offered by Safaricom, would cause a financial crisis in the country. Though he did not name the banks that wanted to see M-Pesa dead, the governor said he did not agree with their proposal.
The unexpected M-Pesa probe ordered last week by acting Finance minister John Michuki may have been influenced by an informal cartel of local banks unhappy with the threat posed by Safaricom's mobile money transfer service poses to their business. According to well-placed sources, four big local banks have formed an "ad hoc committee" to try and get M-Pesa stopped.
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