This archive report was first published on 24 September 2019.
On September 24, 2019, former Central Bank of Kenya Governor Njuguna Ndung'u emphasized the need for electronic identification systems in Kenya.
According to a study conducted by Prof. Ndung'u, the current identification system in Kenya is not digitally enabled and secure enough to support further growth in mobile payment services and consumer protection.
Prof. Ndung'u, who licensed Safaricom's M-Pesa in 2007, noted that Kenya's long-established ID system is not digitally enabled, despite its wide coverage. He suggested that once digitally enabled, the ID system can be further cleaned and its security enhanced.
The study, titled 'Digital Technology and State Capacity in Kenya,' was published last month by the Centre for Global Development, which aims to reduce global poverty and improve lives through innovative economic research.
Prof. Ndung'u highlighted the benefits of enhancing the identification system, including increased opportunities for public programs, businesses, taxpayers, and investors.
He also pointed out the vulnerabilities of the current system, citing the example of the State-supported pension system, which has been exposed to fraud and inconsistencies, with tens of thousands of ghost pensioners being paid every month.
A 2018 clean-up of the police force payroll also found thousands of ghost officers being paid by the government, and the registration of deaths and births has been found to be inadequate as it is not digitally systematized.
