@tony stark: Noted and thanks!

Barely half an year after jointly launching MKESHO with Safaricom, Equity Bank has decided to bolt from the product. Its not clear why the decision was taken but it appears to be post-signing dispute over revenue sharing. You will note that if one attempts to move cash from MKESHO account to MPESA, the delay runs into hrs. making it completely inffective for quick transacting. The product has been allowed to quetly die. James Mwangi has responded as follows;

(i)Launched a superior product with Orange money. In Equity bank ATMs halls and banking halls, MKESHO posters & desks have been replaced with Orange Money ones. JM took a swipe at the launch of Yucash, saying Equity doesnt sign 'exclusivity' agreements and it stands for 'financial inclusion'. No doubt this was aimed at Safcom

(ii)There is an aggressive drive towards recruiting Equity agents from shopkeepers, butchers and bars. This appears to be a direct answer for MPESA agents. In fact, in some towns green(safcom) is being painted Orange. This has started in Central Kenya. Anyone who has been to Othaya recently will no doubt have seen this.

(iii)In order to achieve (ii) above, the 'FLOAT' concept is being employed by EB ruthlessly. The agents have to post some float in order to facilitate deposits and withdrawals quite similar to MPESA. thisway, the capital employed is the agent's and not EB'S

Of course the verdict is still out on who takes the prize

Zain vs. Safaricon - real application of Henry Kissinger's "Mad Dog" Theory. Louis IV used the same tact; they've caused a few ripples, they've created suspended terror. Who knows what they'll do next?
@ Sasha, true, EABL just might have bought large chunks of Castle stock to keep it out of the market #Conspiracy Theory

@Intel/Sasha
i think to quite answer the question we need to look at Porter's Five Forces, which is a tool that helps us understand where power lies in a business situation, as well as help you understand the strength of your current competitive position, and the strenght of a position you are looking to move into.

Porter's Five forces
* Supplier power
* Buyer Power
* Competitive Rivalry
* Threat of Substitution
* Threat of New Entry

Anyone who can get his/her hands on a movie called exams will see how different business minds think under intense competition to beat the other.