I think if implemented, this could put Safaricom in a very tight corner considering that's what has held their customers to them.

http://www.the-star.co.k...ly-end-m-pesa-dominance

http://www.businessdaily.../-/14bgjuqz/-/index.html

How?

Clause 13. Interoperability

13.1. Electronic retail payment service providers shall utilise open systems capable of becoming interoperable with other payment systems in the country and internationally.

13.2. Electronic retail payment service providers are encouraged to enter into interoperable arrangements.

13.3. For purposes of giving effect to 13.2, electronic retail payment service providers may amongst other arrangements be members of Payment Service Provider Management Bodies.

Clause 36. Interoperability

36.1. E-money issuers shall utilise open systems capable of becoming interoperable with other payment systems in the country and internationally.

36.2. E-money issuers are encouraged to enter into interoperable arrangements.

36.3. For purposes for giving effect to sub-Regulation 36.2, E-money issuers may amongst other arrangements be members of Payment Service Provider Management Bodies

And good news to Kenyans too.
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Completely agree with you. Could you share the link where you're getting this info.

Its a good move but saying it will end Mpesa's dominance is an oversimplification and might not actually happen:
a) The proposals say that money transfers should use "Open Systems", but it doesn't say what these systems are or how they should work. Inter-operable protocols take years to develop and stabilize. Also, openness and availability between collaborators is key. I am also wondering how this will work. Will Safaricom open their transacting servers to other networks? Is it like depositing money in Barclays then withdraw in Stanchart? Baffling. Easy on paper, difficult on the ground.

b) Mpesa dominance is because of the availability of agents across Kenya. Airtel, Yu and Orange don't want to pay agents respectable margins then wonder why no money is flowing to their networks. As long as a subscriber cannot find an agent by merely turning his head and walking 5 meters, they will not use the money service even if regulations and inter-operability is made as open as the sky.

This is going to be rough - i) CBK is incompetent and ii) there is precedence whenever govt wades in tactlessly into telecomms - Number portability - was the magic bullet that was supposed to rein in Safaricom's dominance - only it didn't and it poorly burnt the chap who setup the exchange service.
My 2 cents.

they should do the same to dstv

Mammoth case coming up...

My reading of this is that there will be a clearing house where providers will settle transactions. The person who has most clients and settles in-house without reference to the clearing house greatly saves on costs. Much like banks clear their cheques. Impact to Safaricom will be minimal, unless interchange fees are regulated.