SMS Banking Driving Development In Kenya

Safaricom Telecommunications creates SMS Money Transfer In Kenya

(M-Pesa, M For Mobile, Pesa Is Swahili For Money)
IBM adopts M-Pesa and builds on it by creating the Health Care System of the country and then its Security System

(Viewed on French channel BFM Business – “Les Sagas des BFM Business”)
Relevant excerpt: 
about 6 min excerpt from time point 22:20 to 28:40
French narration over some English statements.


Notes: In Kenya, only 10% of people have banking accounts. There are a lot of people that work in the capital and need to send the money to their families in the rural areas. They put the money in an envelope and give it to the bus driver of a bus company; they keep their fingers crossed that it will reach their families. It is complicated to have a bank account and there are no banks that will transfer 10 or 15 dollars. Using sms money transfer, you can transfer any amount and if you run out of money you can ask a friend to lend you by SMS; you can also pay for example a taxi driver by SMS.

 Excerpts from above link:
"The technology underlying the service was developed by Vodafone, which has an equity investment in Safaricom, and the service is run by IBM Global Services."
"People transfer money from one to another–like a mobile version of PayPal. They pay bills and handle real-time payments, such as for taxi service. They make their insurance payments. They buy airtime for their mobile phones. And they deposit and withdraw money."
"For starters, think micro-credit, salary payments and international money transfers. “The intention is that eventually we can do all of our business on the phone,”"
End of excerpt



Notes: After the creation of M-Peza a lot of multinationals were attracted. Nokia made phones adapted for the local economy (e.g. absence of internet) and also applications that respond to everyday needs like i-Tunes for sharing music in the absence of internet.


IBM created a research laboratory in Nairobi, Kenya.

IBM adopted M-Peza and used it to create the health care system of the country.
Security system is inititated.


Education system is mentioned.


Safaricom mentions that the value of the investment has been immensely multiplied and is now worth many millions of dollars.

Safaricom Foundation Link: