Economy

KFS defends M-Pesa use at Likoni channel

coast-ferry

Mombasa residents board a ferry at Likoni Channel in November. PHOTO | LABAN WALLOGA | NMG

Summary

  • The Kenya Ferry Services has defended the rollout of M-Pesa mobile money payment system at the Likoni ferry crossing channel saying it is meant to implement government guidelines to curb Covid spread.
  • KFS said the government issued the guidelines on measures to be adopted to mitigate severity of the Covid-19 pandemic.

The Kenya Ferry Services has defended the rollout of M-Pesa mobile money payment system at the Likoni ferry crossing channel saying it is meant to implement government guidelines to curb Covid spread.

KFS said the government issued the guidelines on measures to be adopted to mitigate severity of the Covid-19 pandemic.

It further said that for the transport, logistics and cargo sectors, the guidelines issued on June 2, 2020 were for the sector to encourage cashless transactions to reduce circulation of hard currency and use alternative methods such as mobile money.

Through an affidavit of its Managing Director Bakari Hamisi Gowa, KFS said that in January 2020, it planned the procurement of provision of cashless revenue collection through mobile payment system and an integrated system solution. It further said the tenders were awarded to Safaricom Ltd and National Bank in May 2020.

The affidavit by Mr Gowa is in response to an application for conservatory orders by Muslims for Human Rights in a case where it is challenging the exclusive use of M-Pesa mode of payment for toll charges at the ferry crossing channel.

“Two contracts-one for the provision of mobile payment system was entered into with Safaricom Ltd and provision of cashless revenue collection integrated system solution was entered into with National Bank Ltd at the conclusion of the procurement processes,” said Mr Gowa.