An Overview of Islamic Sharia Issue Regarding Mobile Money Transaction (Mpesa) In the Republic of Kenya

Abstract

The paper aims to examine the products of mobile money banking services in Kenya using M-pesa (mobile cash money). This study is based on qualitative research methodology which was used to ensure the objectives were answered progressively. The primary data were collected from the interview process together with the analysis of the related documents. Products such as Okoa Jahazi, Betting, Money transfer and M-Shwari were designed on usury (Riba), uncertainty (Gharar), and duplicate payment to mention but few. The above-mentioned products are not based on equity and not comply with Islamic values and principles. Therefore, the viable alternative model of Islamic finance would be useful to all stakeholders and clients mitigating the issue.