Airtel challenges Safaricom supremacy in money-transfer - Page 2 of 2 - Capital Business
Connect with us

Hi, what are you looking for?

Airtel is teaming up with Equity Bank Ltd, the country’s biggest lender by market value, to begin operating a mobile-phone banking product in July/FILE

Bloomberg

Airtel challenges Safaricom supremacy in money-transfer

Dominant Players
The Competition Authority of Kenya has received the complaint filed by Airtel, spokeswoman Elizabeth Ntonjira said in an e-mail. Telecommunications is among several industries being examined for possible abuse of dominance in a probe that is expected to be completed by July, Francis Kariuki, director- general of the competition authority, said last month.

The East African nation of 43 million people had 31.3 million mobile-phone subscriptions by the end of last year, of which Safaricom accounted for 68 percent, Airtel 17 percent, Essar Group’s yuMobile 9 percent and Telkom Kenya Ltd 7 percent; all of which are based in Nairobi.

Under Kenyan law, a company that controls at least half of the trade of services or goods is considered dominant, a position that can be abused through practices including unfair pricing or restricting market access. A conviction of abusing a dominant market position can lead to a five-year prison term and as much as a Sh10 million fine, according to the Competition Act.

Situation Change
“Hopefully by this July the situation will change,” said El Youssefi.

In April, Kenya’s telecommunications regulator granted approval for Safaricom and Airtel to buy yuMobile and it’s considering awarding licenses for at least three more telecommunications companies. Orange SA has said it may cut its holdings in Kenya, where it owns 70 percent of Telkom Kenya.

Safaricom’s shares traded unchanged at 12.80 shillings by 10:48am on Wednesday in Nairobi, halting a two-day losing streak and putting its gain this year at 18 percent.

Pages: 1 2

Advertisement

More on Capital Business