In 2016, the Competition Authority of Kenya created a law requiring all mobile service providers and banks to disclose fees charged on mobile-based transactions. The law was meant to protect consumers from exploitation and to enable them make informed decisions.
Two years after the law came into effect, the authority’s evaluation show that it has benefitted 39 million mobile services subscribers in Kenya. According to a survey conducted by CAK, 80 per cent of consumers reported the correct transaction fee charged on mobile transactions. It was an increase from 25 per centof consumers who answered correctly before the law came into effect.
The research also showed that users of mobile-based loans were increasingly aware of the loan cost with more than 70 per cent of respondents saying they knew the charges on the loans. Over 80 per cent of customers surveyed knew that paying bills through mobile money carried a fee.
According to the CAK 2018 Annual Report, the law has increased competition among mobile service providers “….as consumers are able to compare prices and make informed choices.“