Kenya Telcos, Vendors Now on the Spot for Hidden Costs

Thursday, November 3, 2016

Many Kenyans have come to value the convenience of mobile money payments, but a consumer organisation has raised the red flag over the hidden costs.

The Consumers Federation of Kenya (Cofek) says a cartel involving mobile payment service providers and merchants is fleecing customers through undisclosed charges disguised as transaction fees but which in reality are mark-ups on price tags on the labels of goods and services.

In one case reported to the federation, which is yet to be verified, a mobile payments firm is enticing merchants to enlist on its platform by allowing them to load an additional five per cent commission on the value of the transaction.

Source: allAfrica (link opens in a new window)

digital payments, fintech, telecommunications