EAC pushes for uniform mobile money transfer charges

Corporate News

ICT Cabinet Secretary Fred Matiang’i. PHOTO | FILE 

By OKUTTAH MARK

In Summary

• The plan is part of a wider strategy by Uganda and Rwanda to also harmonise data and SMS tariffs.

Mobile money transfer tariffs within East Africa Community member States could become uniform, if proposed regulations are passed into law.

Fred Matiang’i, the ICT secretary, says the plan is part of a wider strategy by Uganda and Rwanda to also harmonise data and SMS tariffs.

The proposal to have the mobile money and SMS charges harmonised were arrived at during the East Africa ICT ministers’ meeting held in Kampala on June 5.

“We are working on a proposal to have tariffs of SMS and those of mobile money transfer be harmonised within the region. Each of the East Africa member State will have to put a proposal to their respective Treasury and get their advice because it will have a revenue implication on the governments,” Dr Matiang’i told Business Daily in an interview.

He added that the mobile operators will have to negotiate and agree on inter-operator rate, which will then be presented to their respective ICT ministries before tabled to the East Africa ICT ministers for discussion in the next Northern Corridor summit.

“The consultation with the private sector is necessary since we understand that they are also in business, however, we would also want to see that our people are not overcharged.”

READ MORE: Officials move to ease money transfer across East Africa

The Kampala meeting follows a communication from the Communication Authority of Kenya (CA), to Safaricom, Airtel and Telkom Kenya’s Orange, seeking their views on the application of a harmonised data roaming charges within Kenya, Rwanda, Uganda and South Sudan.

The move by the CA, follows a directive from the head of States from the three neighbouring countries to their respective regulatory authorities, to find means of harmonising the regional roaming data charges.

East Africa hopes to replicate the success of harmonised voice tariffs in other countries that saw the Safaricom and Airtel reduce their voice roaming charges by 60 per cent.