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

Authors

  • Manswab Mahsen Abdulrahman
  • Ali. Hemed Awadh

DOI:

https://doi.org/10.31436/alrisalah.v4i3.256

Keywords:

Mobile Money, Transaction, Islamic Sharia, 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.

Downloads

Download data is not yet available.

References

Ahamd Ausaf. Contemporary Practices of Islamic Financing Techniques. Islamic

Research and Training Institution, Islamic Development Bank, Saudi Arabia, 1993.

Aḥmād bin Ḥanbal. Musnād Imām Aḥmād bin Ḥanbal. (Beirut, Musāsāt al-sālāh, 1st ed,

Āḥmad Ǧassan. ĀLqārḍ Ālāḏ ǧra ĀL-manʿa. university journal for economic and law,

Ahmad Hassanat and Ghada Awad Altarawneh. Gambling –free lottery, a new Islamic

Lending ticket. journal of Islamic Accounting and Business research, 2014

Al-ḥakim Mūḥāmād bin ʿĀbdāllah. Al-Mustadrāk ʿAlā Swāḥḥēin. Beyrūt: Darul Ālktubu

Ālʿimiyah, 1st ed, 1990.

Al-Shawkani Mūḥāmād Bin Ali Bin Mūḥāmād. Nil Awtwari. Idarat twiba’a Munira,

Benjamin Ngugi, Mattew pelowski and Javier Gordon Ogembo, M-pesa. A case study of

the critical early Adopter’ Role in the Adoption of Mobile Banking in Kenya.

Electronic journal of information System in developing, 2010.

Brian Kettell. Introduction to Islamic banking and finance. John Wiley & Sons Ltd:

Asia Pte. Ltd: 2011, 1st ed.

Daily Nation, future of 19 betting firm now depend on security vetting.

nation. co.ke/ news/Betting-firms-security-vetting/1056-5178946-lx3tut/index.html>

Daily Nation, Retrieved: <https://www.nation.co.ke/news/Betting-firms-security- vetting/1056-5178946-lx3tut/index.html>

Ignacio Mac and Dan Radcliffe. Mobile payment go viral: M-pesa in Kenya. The Capco

Institute Journal of Financial Transformation, 2010.

Isaac Mbithi and David N,Weil. Mobile Banking: The impact of M-pesa in Kenya. (National bureau of Economic Research: Cambridge, 2011.

Kuwait. Al-Mawsu‘ah al-Fiqhiyyah al-Kuwaitiyyah Ministry of Waqf and Islamic Affairs: 1993.

Maarifa academy. Islamic banking and finance principle and practices. No place & publisher: 2014.

Meriam – Webster.com 2009 gamble.

M-pesa charges, How to Deposit into Betin Kenya using M-pesa Betin Paybill Number, Retrieved,

Mūḥāmād Ābū Zuhrā. Buḥuth fi Rībā. Egypt, Darul fikri:1986.

Mūẖāmād bin Ḥībān, Āl-Iḥsān fi Taqrīb sāḥīh ibn H̱ībān, Beirut, Musāsāt al-sālāh, 1998, 1st ed.

Muḥāmāḏ bin yāzid qazwēyn. Sunan ibn maǧah, Beyrūt. Darul Risalaẗ ʿlamiyāh, 1st 2009.

Muhammad Abu Bakar, basic of riba (interest) and its two major types <https://blossomfinance.com /press/basics-of-riba-interest-and-its-two-major-types-4-of-28>

Muhammad bin Ahmad Alqurtubi. Al-jami’ li Ahkami Al-Qur’an. Riyadh, Darul Alim Alkutub, 2003.

Muhammad Imam Sastra Mihajat. Contemporary practice and Maysir in Islamic banking and finance. Malaysia, International Journal of Islamic Management and Business: 2016.

Muhammad Zubair and Sadia Khattak. Concept of Riba (interest) in Islamic law: its impact on society. Journal of Abdul Wali Khan University Marda k.pk Pakistan, 2015.

Mukesh Sadana, George Mugweru and others, Riding the M-PESA Rails: Advantages & Disadvantages, <http://www.microsave.net/wp-content/uploads /2018/10/BN_ 94_Riding_M-pesa Rails Advantage Disadvantages.pdf>

Personal Interview with Ustadh Abdulatwif Ibrahim, M-pesa users, Mombasa County in Madrasatul- Falah 20/6/2019.

Personal Interview, with Esther Ngugi, Safaricom Agent, Kiambu County in Thika, 20/6/2019.

Personal Interview, with Salim Abdulrahman ,M-pesa User, Mombasa County in Majengo 20/6/2019.

Rusni Hassan and others. Islamic Banking and Takaful. Malasyia: Pearson Malaysia Sdn Bhd: 2016.

Safaricom, M-pesa Tarrifs july 1st 2018, < http:// www.Safaricom.co.ke/images/Downloads/M-pesa.pdf > viewed on 10/7/2019.

Safaricom, M-pesa Tarrifs july 1st 2018. <http://www.Safaricom.co.ke/images/Downloads/M-pesa tarrifs fa july 1st 2018.pdf>.

Safaricom, M-shwari. <https://www.Safaricom.co.ke/personal/m-pesa/do-more-with-m-pesa/loans-and-savings>.

Safaricom, Okoa Jahazi, Retrieved: http://Safaricom.co.ke/personal/plans/getting-started/okoa-jahazi>.

Shafi‘i Abdul Azeez Bello and Rusni Bt Hassan. Saving And Current Account In The Context Of Shari‘Ah Contract. Arabian Journal of Business and Management Review Nigerian Chapter: 2014.

Sulēimān bin Āl-ašāṯ. Sunanu Ābī Daud. Beyrūt: Darul Risalaẗ, 2009,1st ed.

Zamir iqbal and Abbas Mirakhor. An introduction to Islamic finance: Theory and practice. John Wiley & Sons Ltd: Asia Pte. Ltd: 2011, 1st ed.

Downloads

Published

2020-07-15 — Updated on 2020-08-05

Versions

How to Cite

Manswab Mahsen Abdulrahman, & Ali. Hemed Awadh. (2020). An Overview of Islamic Sharia Issue Regarding Mobile Money Transaction (Mpesa) In the Republic of Kenya. Al-Risalah: Journal of Islamic Revealed Knowledge and Human Sciences (ARJIHS), 4(3), 199–213. https://doi.org/10.31436/alrisalah.v4i3.256 (Original work published July 15, 2020)

Issue

Section

English Articles