Mobile Banking Services in the East African Community (EAC): Challenges to the Existing Legislative and Regulatory Frameworks

Abstract

This article addresses the issues affecting mobile money in the East African Community (EAC), where mobile phones are used to transfer more than half a billion dollars every month. The purpose of this article is therefore to demonstrate the need for the EAC to address issues relating to telecommunications and financial regulation to ensure that mobile money services bring the desired benefits, especially to the poor. The article analyses the legislative and regulatory environment in which mobile money operates and how it has shaped the emerging models and services. Attention is given to the different regulatory frameworks in which the respective systems operate. Based on this analysis, the article draws lessons and makes recommendations in terms of legislative and regulatory frameworks geared towards the increasing adoption and use of mobile money.