Mpesa In Hot Water


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DATE: Sept. 27, 2014, 4:05 p.m.

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  1. Safaricom and Equity thin sim card battle intensifies - See more at: http://www.the-star.co.ke/news/article-191433/safaricom-and-equity-thin-sim-card-battle-intensifies#sthash.Tt7AYvfu.dpuf
  2. EQUITY Bank's planned roll out of mobile money transfer services using the overlay SIM card technology hit yet another hurdle yesterday after parliament opposed it pending its own independent audit.
  3. The technology was on Monday approved by the Communications Authority of Kenya and the Central Bank of Kenya on a one-year trial during which it will be evaluated by the two regulators.
  4. The CA said thin SIMs manufactured by Taiwan's Taisy Technologies, that Equity has contracted, complied with ISO and European Telecommunications Standards Institute's standards based on scientific tests by China National Computer Supervising Test Centre and Bank Card Test Centre of China.
  5. The regulator said that the opinion by GSMA, the global association of mobile operators, late last month did not cite "specific and confirmed vulnerabilities" arising from the use of thin SIMs, except for the inherent vulnerabilities of all SIM cards to security threats.
  6. http://www.the-star.co.ke/news/article-191433/safaricom-and-equity-thin-sim-card-battle-intensifies
  7. Parliament's departmental committee on Energy and ICT has set up an 11-member sub-committee chaired by Rarieda MP Larry Gumbo to prepare terms of reference that will guide its investigations.
  8. Committee chairman Jamleck Kamau told a press conference at Parliament's press centre that members were “still apprehensive about the security concerns raised about the technology” and intends to get views from independent experts.
  9. “We will get our independent view outside of the CA, Safaricom and Equity,” Kamau insisted. “We are asking the CA in the mean time to stop the roll out by Equity until the security issues which borders on privacy are addressed.”
  10. The thin SIM technology could be subjected to two more independent audits if National Assembly Speaker Justin Muturi approves the committee's push.
  11. CA chairman Ngene Gituku on Monday said they would hire an international firm to conduct an independent security audit on all SIM cards and in particular the thin SIM in mobile transfer services during the one-year trial period.
  12. Under the Kenya Information and Communications Act the CA remains independent in making decisions.
  13. “We understand the CA is independent but it can't run away from an oversight issue,” said Igembe MP Mithika Linturi.
  14. He said in approving the technology, the CA is being contemptuous to Parliament which directed that they should come back report back after the board's approval.
  15. Equity and Safaricom argued their case before the committee on September 5 while the CA appeared on September 9 where it emerged that Equity SIMs were yet to be approved by the CA board.
  16. The board finally gave its green light last Friday, Gituku said.
  17. Equity CEO James Mwangi said on September 10 that its SIM cards had been approved by three independent experts as secure.
  18. He cited the US, UK, Singapore and China as countries where the technology was in use by “credible global organisations”.
  19. Safaricom has however threatened that it may not be liable for “potential” financial losses by customers who will opt to use the thin SIM.
  20. Gumbo warned that Parliament will hold the CA responsible for any such a loss if it ignores its directive since Kenya lacks data protection laws for consumer recourse.
  21. - See more at: http://www.the-star.co.ke/news/article-191433/safaricom-and-equity-thin-sim-card-battle-intensifies#sthash.Tt7AYvfu.dpuf

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