financial conglomerate notes that Kenya’s e-commerce presents an operationally efficient and
cost-effective payment and collection solution to the unbanked population.
In a report dubbed: ‘Financial Trends of the Development Sector in Kenya and Africa’, the bank
observes that with the expansion of electronic commerce, companies are now looking to
streamline their processes —
without compromising security, confidentiality, compliance,
auditability and integrity of transactions. According to the
Global System for Mobile
Communications Association (GSMA), about 40 per cent of Africa’s one billion population has
mobile phones, but only 20 per cent have bank accounts. Citibank also pointed out that Kenya
was one of the largest recipients of aid in Africa, with a total of $1.8 trillion (Sh165.6 trillion)
worth of Official Development Assistance (ODA) received in 2009.
But the bank raised concern that securely managing the receipt and distribution of donor aid
flows within Kenya’s complex — and often paper-based market — creates many challenges.
Kenya’s banking industry has witnessed tremendous changes linked
with the developments in
Information Communication Technology (ICT) over the years. The quest for survival, global
relevance, maintenance of existing market share and sustainable
development has made
exploitation of ICT imperative in the industry. Application of ICT concepts, techniques and the
development of policies and strategies has become a subject of fundamental importance and
concern to all banks, and is a prerequisite for local and global competitiveness.
