By HUDSON NANDOKHA
Kenya has witnessed phenomenal and transformational growth in the mobile telephony sector, especially in the mobile money substratum.
Its success in the money transfer platform has been celebrated and replicated worldwide.
However, there is a dire need for the industry regulator, the Communications Authority of Kenya (CA), to regulate the sale of mobile telephone Sim cards.
With the Mobile Money Loan Applications (MMLA), Kenyans can access short-term loans on their mobile handsets.
The upsurge of organisations offering mobile money solutions is an indicator of good prospects for this subsector (“fintech” in the industry lingo).
In the midst of this growth lies regulatory challenges in the sale of the all-important technological gadget in this sphere, MSISDN (sim card).
CA regulations require one to register for a mobile telephone line by producing the national identity card before one can buy and operate one.
The most important question is, does a copy of the ID card provide the crucial particulars of the prospective mobile subscriber and all the desired safeguards?
The sanctity of the national ID card has long been eroded. It is not uncommon for one to forget the document in the many mobile money outlets since it is demanded before carrying out any transaction.
It is common to see in banking halls and offices lost and found IDs displayed in the hope that the owners will see them.
How about somebody using a fake or falsely procured ID or one that has been misplaced by the owner?
How many mobile telephone lines is one allowed to own and operate? Is it possible for the mobile service provider to confirm with the person if a new line is being bought on behalf and the system indicates the person owns another line with the same provider? Are biometrics safer?
The other question to be considered by the industry regulator is, what happens to the genuine bearer of the identification documents used to inappropriately procure mobile loans or commit a felony without their knowledge?
Criminal laws in the country will treat such a person as a first suspect and this is the main problem associated with mobile banking.
Many innocent Kenyans are being blacklisted daily by credit reference bureaus for bad debts procured online and which they had no knowledge of.
Many have been made to repay loans they did not take, especially when seeking clearance to fulfil the requirements of Chapter Six of the Constitution.
These are mostly people seeking an elective position, promotion at the workplace, loans from the mainstream financial institutions.
The CA must revisit its regulations on the sale of Sim cards in the face of new challenges. The banking regulator, too, should be roped in, especially in taming the exorbitant Fintech interest rates.
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