www.WirelessFederation.com/news: The first phase of negotiations over France Telecom (FT) claim for KES28.9 billion (USD385 million) submitted to the Kenyan government has ended amid secrecy. Payment has been demanded by France Telecom following complaints about Kenya’s competitive environment and a scathing attack on the market dominance enjoyed by rival operator Safaricom.

Apart from the original claim of USD385 million, an additional claim of USD300 million has also been lodged by FT  on the grounds that Telkom Kenya’s former management concluded a deal with equipment supplier Rapid Communications weeks before the French took over.

This denies FT chance to negotiate a deal under whose terms it would inherit future debts.

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M-Pesa launches in UK (Kenya)

Vodafone’s group company, Safarikom has launched m-pesa, it’s mobile money transfer and payment service at selected outlets in the UK.

Kenyans in the UK  can now send money to their friends and family in Kenya through M-pesa UK, direct to their mobile phone wallets.

Western Union, Provident Capital Transfers and KenTv were involved in a small pilot before the commercial launch of this service.  A total of 19 outlets with high local kenyan population were selected to trial this service.

To send money using M-PESA, the sender in UK will be required to identify themselves and furnish the agent with the recipient’s name, Kenyan mobile number and the amount being sent in Sterling Pounds. This will be converted at current rates and sent in Kenyan Shillings.  Neither party is charged a registration fee.

A transaction fee ranging from £4 to £6.90 will be charged though.

Following authorisation by the Central Bank of Kenya, Safaricom shall be increasing the locations in the UK from which money can be sent to M-pesa customers as well as launching services across other popular remittance corridors

Currently, the maximum amount that can be sent internationally per transaction through M-pesa is £250 while the total allowable per month from a single sender in the UK is £1,000.

The successful take-up of M-PESA in Kenya has clearly demonstrated the demand for easily accessible, secure cash payment services in emerging markets,” said Nick Hughes, Vodafone’s Head of International Mobile Payments. Our partnership with Western Union allows M-PESA subscribers to receive international remittances and builds on the demand we have already seen domestically in Kenya.”

This program aligns a global leader in money-transfer services, the world’s largest mobile operator group, and arguably one of the most impressive success stories in mobile money,” said Matt Dill, Senior Vice President, Western Union Digital Ventures.  In offering M-PESA users the opportunity to receive funds from abroad for the first time, these three companies are changing the way money moves around the
globe.”

Safaricom CEO Michael Joseph said: We wish to invite Kenyans living in the UK to take advantage of this service, which presents a real innovation on our M-pesa menu. Through strategic partnerships with Western Union, Provident Capital and KenTV we are giving them an opportunity to convert across two currencies into M-pesa and send money affordably without any hidden costs directly to the mobile phone of the recipient.”

Telkom Kenya managing director Sammy Kirui, mobile subsidiary Safaricom managing director Michael Joseph and top Kenyan treasury officials are in London to negotiate the sale of another 9 percent of Safaricom to Vodafone, the East African reports. Safaricom, a profitable company, is currently split 60/40 between state-owned Telkom Kenya and Vodafone. The government must raise USD 375 million to modernise Telkom Kenya and pay of over 11,000 workers it plans to make redundant. Telkom currently has 18,000 employees and is losing between USD 40.5 million and USD 67.5 million a year, according to a PKF Consulting audit in 2005. Neither party has indicated how much the stake is likely to cost, with the results of an IFC valuation on the government’s behalf known only to a few top treasury officials. Back in March, Vodafone offered to pay USD 100 million for 11 percent of Safaricom.

Source- http://www.telecompaper.com

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