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M-PESA Project in Northern Kenya. Using M-PESA as a payment system for Cash for Work activities in pastoral areas of Kenya. Télécoms Sans Frontières (TSF) In partnership with Vétérinaires Sans Frontières Germany (VSF-G). Context. Project area with Safaricom network and MPESA agents:
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M-PESA Project in Northern Kenya Using M-PESA as a payment system for Cash for Work activities in pastoral areas of Kenya Télécoms Sans Frontières (TSF) In partnershipwith Vétérinaires Sans Frontières Germany (VSF-G)
Context • Project area with Safaricom network and MPESA agents: Laisamis, North Horr, Lokichokkio • Project area without Safaricom network: Merille and Logologo. • Project area without M-PESA agents: Songot, Loteteleit Total number of CfW beneficiaries: 2150 Beneficiaries paid through Mpesa: 1050.
Objectives • Explore the use of the mobile phone payment system called M-PESA in pastoralist areas as an alternative to the use of traditional direct cash payment. • Conduct Cash For Work activities and remunerate some beneficiaries through the M-PESA system.
Factors in deciding on Payment System • What security and corruption risks will be faced? Does this risk change depending on the option chosen? • How long will it take to establish disbursement arrangements? • How cost-efficient are the various options? What is the total cost of getting the cash into the hands of the recipients (including, for example, staff requirements and vehicles)? • How far will recipients have to travel • to reach the disbursement point?
Implementationstrategy • Mpesabeneficiariesselection: • Marketanalysis • Cell phone ownership • Literate • Mpesaregistered • Forming groups of 5 beneficiaries: • Give 1 SIM card to everybeneficiary • Give 1 cell phone and 1 solar panel to each group • 1 person in charge of equipment • Select Community assistants amongMpesabeneficiaries
Implementationstrategy • Training: • Registerbeneficiaries to Mpesa • Provide a user guide to eachbeneficiary • Explain the use of cell phones and solar panels • Explain the use of Mpesa • Checking phone numbers: Frontline SMS • Training reinforcement
Challenges • Weak or no Safaricom network • Number of Mpesa agents and distance from them • ID card ownership • Low literacy rate • Technical issues: Lost SIM cards, Problems with battery or connectors
Lessonslearnt • Preparation: • Mpesacorporateaccount: ANTICIPATE • Procurement • Data entry • Coordination: • Headquarter/Field • Field • Communication: • With M-PESA agents • Withbeneficiaries
Beneficiariesreactions • User guide: Their kids readit for them. • Easy ‘Mpesaiseasierbecauseyoureceive the money and withdrawwhenyouwant. With direct cash payment, you have to queue’ Eunice • Secrecy ‘WithMpesa the paymentis more secret. Somebodycanask me if I withdrew the money and I cansay ‘no’’ Lokoile ‘If paid by cash, I have relatives coming to gettheirshare of the money’ Ntorno • Safety ‘It issafebecausewhenyou are paid by cash, people know it and can rob us’ James Boru • Savings ‘WithMpesa, I canwithdrawless money like 1000 or 2000 to use itdirectly and save the rest’ Bernard • Distance ‘I cansend money to mychildrenatschool’ Saiti
Conclusion • Good alternative for the organization • Mpesa Pilot projectwelcomed by beneficiariesand Mpesa agents. • Gaps for Improvement: • Quality of network and delayswithMpesa • Transport (for beneficiaries living in non-covered areas) • Technicalequipment