By Natasha Nthenya
Kenyans will soon be required to have Huduma Namba to be able to conduct M-Pesa and digital transactions after the Central Bank of Kenya (CBK) announced in a report that Huduma Namba will help reduce frauds and enhance safety on online transactions.
“The expected rollout of the National Integrated Identity Management System (NIIMS), commonly known as Huduma Namba, will provide a key impetus to further deepen the adoption, safety, and robustness of digital payments,” CBK said in the report.
CBK noted that there is an increase in security risk through digital payments as many Kenyans are now using digital payment methods to make their transactions and payments due to Covid-19 so there is a need to increase safety measures.
“There will be a need for increased vigilance and alertness in a post-COVID payments world, to protect systems against increasing cases of cyber-attacks and AML/ CFT risks.”
CBK also said that the biometric identification scheme will form a key part of the national digital payment system.
The government is expected to implement this use of the Huduma Namba transaction new rule when the value of mobile money carried out at agents as a proportion of GPD has increased from 23 percent in 2010 to 60 percent in 2021.