QUALITY OF SERVICE AND
CONSUMER EXPERIENCE
FORUM.
(23rd to 25th November 2015)
Laico Regency, Nairobi.
Kenya
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KENYA
Area: 582,650 sq km
Population: 43 million
GDP per Capita: USD 994.31
Currency: Kenya Shilling
Legal System: English Common Law system
No. of mobile money accounts: 20 million.
Mobile Phone penetration: 79.2 % in 2014
Internet usage / penetration: 47.3 % in 2014
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AGENDA
1.
2.
3.
4.
5.
6.
Consumer Rights
Consumer Protection
Structure of Payment Systems
Financial Inclusion
Regulatory and Legislative Developments
Q & A.
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CONSUMER RIGHTS
In order to safeguard consumer interest, six consumer rights
were initially envisioned by consumer rights activists of the
West, namely:
Right to Safety
Right to Information
Right to Choice
Right to be Heard
Right to Redress
Right to consumer education.
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CONSUMER PROTECTION
• Consumer protection laws are designed;
to ensure the rights of consumers as well as fair trade,
competition and accurate information in the marketplace.
provide additional protection for those most vulnerable in
society.
Consumer protection law is an area in law that seeks to regulate
private law relationships between individual consumers and the
businesses. It covers product liability, privacy rights, unfair
business practices, fraud, misrepresentation, and other
consumer/business interactions.
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PAYMENT SYSTEMS STRUCTURE
•
•
Innovation in the financial services sector positively contributes to an efficient
and effective payment, clearing and settlement system. In addition, innovation
contributes to improved financial access which is a key attribute of the financial
inclusion agenda. At an advanced level, innovation ultimately leads to an
enriching customer experience that result in the satisfaction of the public good.
The payment system architecture is subdivided into 4 broad areas:
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KEPSS (Kenya Electronic Payment and Settlement System)
ACH (Automated Clearing House)
Payment Card Infrastructure
Mobile Payment Platform
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Payment Systems Structure
Classified into 2 in based on the value and volume throughput;
KENYA ELECTRONIC PAYMENT AND SETTLEMENT SYSTEM
(KEPSS)
Kenya’s only systemic significant payment system used for large value and
time critical payment instructions. It is a Real Time Gross Settlement system
(RTGS).
It has grown overtime due to public usage. It is safe and secure
AUTOMATED CLEARING HOUSE (ACH)
This is used for clearing Electronic Fund Transfer instructions (EFT) and cheques.
Various modernization initiatives have been implemented;
 Value capping 2009,
 Cheque truncation 2012 enabled T+1 clearing cycle
PAYMENT CARD INDUSTRY (PCI)
This industry continues to register growth with mixed fortunes. To reduce fraud, the
industry is using EMV compliant infrastructure – cards, ATMs and POS.
MOBILE MONEY TRANSFER SERVICES
Mobile Financial Services has continued to grow since inception and has revolutionised the Kenyan
economy. Partnerships have been forged in all industries with Mobile payment service providers
ranging from Banking to Public Transport sectors.
Kenya has over 25.4 million mobile money transfer accounts transacting Kes. 6.5 Billion daily
undertaking over 2.5 million transactions per day using the mobile money transfer platform. An
average of KShs. 180 (USD 2.0) Billion per month are transacted through this platform.
FINANCIAL INCLUSION
Source: Financial Access Surveys: 2006, 2009 & 2013



An increase to 67 percent of Kenyans can access financial services .
Only about 7.8 percent are served by informal financial services.
A reduction to 25 percent of the population are still excluded.
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REGULATORY AND LEGISLATIVE DEVELOPMENTS
 Mandate of the Central Bank of Kenya Act under Section 4A(1)(d)
‘formulate and implement such policies as best promote the
establishment,
regulation and supervision of efficient and effective payment, clearing
and settlement systems”
 National Payments System Act, 2011
 National Payments System Regulations 2014
Key Areas within the NPS legal framework provided for in interest of
customers in mind:
 Designation of payment systems or instrument.
 Authorisation of payment service provider.
 Prohibition of issuance of payment instruments.
 Consumer protection
 Settlement of disputes.
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CONSUMER PROTECTION
To avoid exploitation of consumers
• Regulation 35:
(1) A payment service provider shall provide—
(a) a clear and understandable description of the services ……… the
rates, terms, conditions and charges for such services and shall publish
such information and display it prominently at all points of service;
(5) All electronic retail transactions shall be executed in real time—
Provided that where an electronic retail transaction cannot be completed
in real time, the payment service provider shall notify:
(a) the payer of the delay of the execution; and
(b) the customer of the period within which the transaction shall be
completed or cancelled.
(6) A payment service provider may not charge the customer for
fulfillment of its disclosure and information obligations under these
Regulations.
Information to consumers
Protection from misrepresentation of facts
Regulation 37: A payment service provider shall ensure that
its advertisements—
(a) are precise and easily understood;
(b) are not misleading to consumers; and
(c )are comprehensive enough to properly inform
consumers of the main features and conditions of the
product.
Customer care
Regulation 38. A payment service provider shall—
(a) within a period of six months after commencing the provision of payment
services, establish a customer care system within which its customers can make
inquiries and complaints concerning its services;
(b) prior to establishing a customer care system under paragraph (a)—
(i)
provide adequate means for customers to file complaints; and
(ii) address such complaints within a reasonable period from receipt of the
complaint;
(c) put in place a clear mechanism to address consumer complaints due to loss of
funds through fraudulent means; and
(d) provide, at all points of service, easily understood information about their
complaint handling procedure.
Safety of Customer Information
Regulation 42: (1) A payment service provider, its agents
and cash merchants shall keep the information in respect of
services provided to any customer confidential in
accordance with the Act.
Regulation 29: (1) A payment service provider shall—
(a) use systems which are able to provide an accurate and
fully accessible audit trail of all transactions from the
origin of the electronic transfer payments to its finality;
and
(b) keep records of every electronic transfer the payment
service provider processes for a period of at least seven
years.
STANDARDS
 Regulation 15:
(2) A contract for the provision of retail cash services entered into between a
payment service provider and an agent or a cash merchant shall not be
exclusive.
 Regulation 16:
(1) A payment service provider who intends to enlist a new agent or cash
merchant, shall at least fourteen days prior to commencement of such agency,
notify the Bank.
(2) A notification under paragraph (1) shall be accompanied by—
(e) a risk assessment report of the provision of cash services through agents or
cash merchants including the control measures applied to mitigate the risks;
 Regulation 21:
(1) A payment service provider shall use systems capable of becoming
interoperable with other payment systems in the country and internationally.
(2) A payment service provider may amongst other arrangement, enter into
interoperable arrangements.
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SERVICE QUALITY
The Kenya Information and Communication Act (Part VI A )provides the legal recognition to
electronic transactions.
Some of the key areas that it deals with are:
 facilitate electronic transactions by ensuring the use of reliable electronic
records;
 facilitate electronic commerce and eliminate barriers to electronic commerce
such as those resulting from uncertainties over writing and signature
requirements;
 promote public confidence in the integrity and reliability of electronic records
and electronic transactions;
 foster the development of electronic commerce through the use of electronic
signatures to lend authenticity and integrity to correspondence in any
electronic medium;
 promote and facilitate efficient delivery of public sector services by means of
reliable electronic records; and
 develop sound frameworks to minimize the incidence of forged electronic
records and fraud in electronic commerce and other electronic transactions19 (
Cyber Crimes)
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Q&A
Thank You …“Asanteni”
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