Equity Bank and Safaricom have launched a new service to let consumers transfer money from and to their M-PESA accounts via their mobile phones. The newly introduced bank account dubbed M-KESHO allows customers to make remittances with their handsets while enjoying other benefits of bank accounts.

A mobile operator Vodafone is implementing M-Pesa payment system in South Africa after its successful deployment in Kenya. Since its launch in 2007 by Vodafone affiliate Safaricom M-Pesa has been implemented in Tanzania and Afghanistan. According to the latest figures over 10% of Kenya's GDP now pass through the mobile banking service.

 Wireless operator Safaricom has extended its hugely successful M-Pesa mobile money transfer service, enabling people in the UK to send funds to friends and family in Kenya. The M-Pesa International Money Transfer (IMT) service lets people in the UK send money directly to the mobile phones of people who have an account with the firm in Kenya. Western Union, Safaricom and Vodafone - which has a minority stake in the Kenyan telco - began working on the international remittance service last year. 

Safaricom, a mobile phone service provider, partnered with Kenya Commercial Bank (KCB) for Agent to Agent transactions that will help improve availability of M-PESA in the market. Now authorized M-PESA agents can instantly access M-PESA when they make cash deposits at the bank. To obtain M-PESA, agents deposit cash into the M-PESA Holding Company bank account at Commercial Bank of Africa.

CGAP has announced the release of a new research findings aimed at encouraging telecom operators, financial institutions and governments to see the business potential in developing markets.  Elizabeth Littlefield, CEO of CGAP notes that financial crisis, just like many economic hardships in the past, should lead to greatest innovations. The company notes that m-banking has not developed up to its full potential yet.

Statement from Joseph Kinuya, the ministry of finance permanent secretary, states that the audit held by the Central Bank of Kenya (CBK) has found Sararicom’s M-Pesa payment processing service to be safe and reliable.  The audit was ordered by Kinuya in December 2008 with money laundering concerns, and triggered by some local banks with fears that regulations of M-Pesa could be susceptible to high-tech fraudsters and money launders 

From this year Safaricom customers will be enabled to pay their electricity and water bills just using their handsets. Now company is negotiating with Kenya Power And Lighting Company and water service companies to work out last decisions for the launching the new services. 

Safaricom’s M-pesa system seems to be showing signs of over-subscription, says Business Daily.   Agents stated they were dealing with float issues frequent periods of network congestion due to them having limited service usage during peak hours. Another agent that Business Daily spoke to said some unscrupulous agents wouldn’t process requests for deposits as this will not generate any commissions for them.

Last week Minister of Finance in Kenya initiated an audit of M-PESA which is believed to be prompted by instigations on the part of several local banks that being unhappy with the ever increasing success of Safaricom's mobile money transfer service are definitely determined to thwart M-PESA from the conducting its business. Four largest banks in the country united to form a special coalition or committee to precipitate the company.

Finance minister of Kenia John Michuki has ordered the Central Bank to audit Safaricom’s M-Pesa money transfer system after launching of new regulations at the School of Monetary Studies in Nairobi for micro-finance institutions. It is necessary to say that such decision was made just a day M-Pesa signed an agreement with Western Union for international cash transactions, reports The East African.

Vodafone, Safaricom and the Western Union Company announced today that they will partner to pilot a cross-border Mobile Money Transfer (MMT) service between the U.K. and Kenya. This service will enable customers to send cross-border remittances from select locations directly to Safaricom mobile subscribers in Kenya generally in minutes.