KCB customers overdrew accounts by $7.7 million during glitch

Technical glitches at KCB Group, Kenya’s largest bank, allowed customers to withdraw more than their actual balances, leading to a loss of about $7.7 million (KES 1 billion) between October 11 and 31.

The issue arose during critical data migration from on-premise to a colocation centre hosted by iColo, a tier 3 data centre. 

A subsequent attempt to integrate cloud databases resulted in a synchronisation error. This led to real-time balance updates failing, which then allowed customers, mainly those with KCB-M-PESA target savings accounts, to withdraw up to triple their saved amount.

The bank has since restricted the accounts of overdrawn customers and told them to regularise their accounts so they can recoup the funds. 

An investigation by TechCabal has revealed multiple service disruptions and system outages over the last few weeks, a pointer that the lender is struggling to patch its systems as it modernises its IT infrastructure. 

Lapses in technical operations have become a concerning issue in the Kenyan banking sector over the last few years. Ecobank Kenya lost “millions of dollars” between 2020 and 2022 due to vulnerabilities in its card operations team, which left the bank exposed to potential fraud by merchants and staff. Similarly, Equity Bank was targeted in a debit card fraud case where $2.1 million was stolen.

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MTN Nigeria is going all in on fintech, swapping signal towers for something a bit more… moneyed. The telecom giant applied for two payments licences: the Payment Service Solutions Provider (PSSP) and Payment Terminal Service Provider (PTSP) licences. 

With the PSSP licence, MTN will be able to process payments for merchants and users alike. Imagine them as the new digital wallet you didn’t know you’d need, smoothly zipping your money from A to B. 

And if they secure the PTSP licence, they’ll have the green light to roll out POS terminals across the country—basically bringing cashless, card-swiping to every nook and cranny of Nigeria. Yet, MTN will have Moniepoint, OPay, and Palmpay to contend with in this segment.

This isn’t MTN’s first fintech rodeo either; MoMo is one of the leading mobile money operations in Nigeria with 5.5 million wallets to show for it. 

And if all goes to plan—i.e., the CBN approves—these licences will make MTN a heavyweight in the financial services ring.

In November 2024, tech trailblazer Funke Opeke is retiring as Managing Director for West Africa at MainOne, the connectivity giant she founded nearly two decades ago. Opeke will still be around in an advisory role, offering her expertise as MainOne completes its transformation under new owner Equinix. 

Who’s filling her shoes? Wole Abu, the current CEO of Liquid Intelligent Technologies Nigeria, who’s already plotting the company’s next big moves in internet services and data centres. He resumed on November 1. 

The company hosted an exclusive dinner party to welcome him to the MainOne family this Tuesday.

Equinix snagged MainOne for a cool $320 million in 2022, with plans to keep the MainOne brand alive under “Solutions by Equinix.” And they aren’t playing small—three shiny new data centres and a massive fibre expansion are in the works, set to make waves in Africa’s connectivity landscape. Equinix’s big leap into West Africa via MainOne has cemented its role as a heavyweight in the region’s tech ecosystem.

Opeke’s journey with MainOne has been game-changing. Back in the day, she led the charge to bring West Africa’s first private submarine cable ashore, setting the stage for a connectivity revolution. Today, MainOne stands tall as Nigeria’s go-to internet provider, trusted by top banks and telcos alike.

Kenya’s new tax compliance methods may bring back the antiquated methods of saving money under mattresses. 

The country recently got fresh funding from the International Monetary Fund—a $606 million loan. One of the loan conditions was that Kenya must increase its tax revenue—Kenya is gunning for KES 20 trillion ($158.8 billion) in the next five years. The Kenya Revenue Authority (KRA) is using technology to up the country’s tax compliance strategy and make sure it hits this audacious goal.

In its brief to the IMF, the KRA disclosed one of Kenya’s leading telecommunication companies has already started sharing real-time data on mobile money transactions. It projects that by 2025 it will have integrated with every telecommunication company and be able to see data of reported income and actual spending patterns of taxpayers—information that can be used to drive data compliance.

The KRA says it is looking out for tax evaders, but reports say the move may drive residents to opt out of banks and keep their money in their houses or under their mattresses for cash spending away from the government’s oversight.

Kenya’s close monitoring of transactions traces back to October 2024 when it announced that it would integrate a real-time system to monitor and tax crypto transactions performed on asset exchanges as a strategy to increase revenue.

The KRA plans to collect KES 60 billion ($465 million) from digital coin traders by 2025.