Kenya’s continuous adoption of paperless cash transactions in the matatu and retail sectors will see further increase in foreign direct investments in Kenya this is according to an analysis done by Frost & Sullivan dubbed ‘The Telecommunications Market in East Africa – Key Fixed and Mobile Market Indicators’.
The study notes that mobile-based cashless services providers should take advantage of the conducive policy framework in their respective countries to entrench e-commerce services into the tourism, retail and matatu sectors.
According to the study, online trading through smart devices and machine-to-machine (M2M) gadgets at payment tills in supermarkets, restaurants, petrol stations, among other pay points, will push the use of 3G and 4G and surpass the 2G network in the next three years.
Frost & Sullivan’s Digital Transformation Research Analyst, Ms Deepti Dhinakaran, said that Internet services in Kenya should be devolved to the counties through the national broadband rollout as this would facilitate paperless cash transactions putting the country at par with first world countries.
Successful payments made through mobile-based cash accounts from handsets coupled with low fees charged by operators has helped Kenyans embrace the service forcing mobile phone companies to expand their market to neighboring countries.
Kenya and the Republic of Sudan rounded off the top three countries in terms of telecommunications penetration rates at 74.2 and 69.9 per cent respectively.
The findings also reveal that that geographical location was not a barrier to telecommunications development with the land-locked countries of Rwanda and Uganda undergoing rapid development in the sector.
“The republics of South Sudan, Sudan and Somalia have shown promising markets but instability in these countries have greatly hindered development of e-commerce based on the cashless mobile phone-based payments and cash transfers that are secure and safe,” the report says.