M-Pesa: Financial Inclusion in Kenya

Rajiv   Lal; Lisa  Cox; Sarah  McAra

Case | HBS Case Collection | March 2016

M-Pesa: Financial Inclusion in Kenya

by Rajiv Lal, Lisa Cox and Sarah McAra

Abstract

M-Pesa, a mobile money transfer service launched in 2007 in Kenya by telecommunications company Safaricom, allowed people to send money via mobile messaging to contacts, such as friends and family, or even to pay for goods and services, such as groceries or a taxi fare. Uptake for the service had soared, gaining 2 million users in one year of operations. By 2014, M-Pesa processed transactions amounting to almost 7% of the total national payments (NPS) throughput value and two-thirds of total NPS throughput volume. It reduced the dangerous burden of carrying cash for individuals and businesses and brought millions of financially excluded people into the formal financial system. But despite M-Pesa’s meteoric rise and the emergence of similar services, 90% of transactions in Kenya were still in cash. Competition was growing and product line extensions had disappointed, as had several international ventures. Company executives, such as Betty Mwangi, M-Pesa’s general manager, believed that there was still ample opportunity for growth. But after M-Pesa’s outstanding launch and overwhelming success, what would be the company’s encore?

Keywords: Market Transactions; Emerging Markets; Developing Countries and Economies; Mobile Technology; Telecommunications Industry; Kenya;

Language: English

Format: Print

32 pages

Educators

Citation:

Lal, Rajiv, Lisa Cox, and Sarah McAra. "M-Pesa: Financial Inclusion in Kenya." Harvard Business School Case 516-011, March 2016.

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Case | HBS Case Collection | July 2017 (Revised December 2018)

Populism in America: Fake News, Alternative Facts and Elite Betrayal in the Trump Era

Rafael Di Tella and Sarah McAra

During the 2016 U.S. election, long-time politician Hillary Clinton, a Democrat, and celebrity billionaire Donald Trump, a Republican, faced off in a contentious race for president. In the primaries, candidates from both major political parties used anti-establishment messaging to appeal to the electorate, a theme that had been on the sidelines of U.S. political discourse for decades. Trump, in particular, played into the rising anti-establishment sentiment as he embraced a populist platform and emphasized his position as a Washington-outsider. He proved to be an unpredictable and incendiary candidate on the campaign trail, garnering much media attention and creating divisions within the traditional Republican base, yet his directness and promise to “Make America Great Again” resonated with several segments of the population. While many experts predicted a Clinton victory, Trump was ultimately elected president in November 2016. During his first 100 days in office, Trump tested the boundaries of the U.S. government, and observers looked on with uncertainty as he took an unconventional and unpredictable approach to policymaking.

Keywords: populism; elites; income inequality; social media; Government and Politics; Globalization; Political Elections; News; Media; Labor; Prejudice and Bias; Public Opinion; Social Issues; Wealth and Poverty;