Airtel Kenya wins case against Safaricom to open M-pesa platform

Airtel Kenya has won a case against Safaricom to open up its M-pesa platform after a long battle over exclusivity of the service.

The Communications Authority of Kenya (CAK) gave this order in a letter signed on the 25th of July and sent to the two Kenyan mobile operators. This directive ordered Safaricom to effect this not later than July 18.

Before this, Safaricom barred M-Pesa agents from engaging in business with other mobile operators.

The order also prohibited Safaricom from levying extra charges on competitors using its network. The letter states, “All restrictive clauses in the agreements between Safaricom and mobile money transfer (M-Pesa agents) be immediately expunged but in any event not later than July 18, 2014.” CAK also stated that Safaricom’s oversight shall be limited to its business with the agents. Each mobile money service provider shall also be responsible for ensuring compliance with the Central Bank of Kenya regulations.

In light of this ruling, the CEO of Airtel Kenya Adil El Youssefi, insists that Safaricom should go public and official with this decision

As at December 2013, Safaricom leads the Kenyan market with 67.9% market share. And the M-pesa service has helped Safaricom in achieving this in Kenya.