Comesa Probes Airtel Kenya Over Alleged Mobile Money Hidden Charges

Comesa Competition Commission (Comesa) has initiated an investigation into Airtel Kenya following allegations that the telecom operator has been misleading customers about mobile money charges and not disclosing foreign exchange rates for international transactions.

This scrutiny extends to Airtel’s operations in Uganda and Malawi as well.

The regional watchdog’s notice, which has been seen by Kenya Insights, specifies that Airtel Mobile Commerce BV, through its subsidiaries, might have breached fair trading regulations.

According to the notice, “The charges displayed to the sender before confirming the transaction are, in some instances, different from the actual charges indicated in the final confirmation message.”

Furthermore, critical details like intermediary parties and the exchange rates used are not consistently disclosed to consumers, which is deemed necessary for transparent financial dealings.

This investigation comes at a directive from anti-trust regulators aiming to increase transparency in the telecom and financial sectors, ensuring consumers are fully informed before completing transactions. Customers are encouraged to submit complaints by February 28 to aid the probe.

In Uganda, Airtel faces accusations of showing one exchange rate to customers during the transaction process but applying a different rate at the time of transfer.

Similar issues in Malawi include undisclosed charges and lack of confirmation details in the recipient’s currency, which the Commission describes as “misleading and unconscionable.”

Despite these allegations Comesa has clarified that the investigation does not confirm wrongdoing but aims to ascertain if Airtel has indeed violated competition regulations.

This scrutiny coincides with Airtel Money’s growing market share in Kenya, which has seen an increase from 6.6% to 7.6% in the three months leading to September 2024, encroaching on the dominance of Safaricom’s M-Pesa, which experienced a slight decline from 93.4% to 92.3% over the same period.

This shift is particularly noteworthy as Kenya’s mobile money subscriptions hit a record high of 40.6 million, with a penetration rate of 78.9%.

Airtel’s push for market expansion includes strategic partnerships like the deal with Naivas supermarkets last November, enhancing its agent network for Airtel Money services.

Additionally, the Central Bank of Kenya’s decision in 2023 to increase daily transaction limits to Sh500,000 has supported Airtel’s growth in mobile money services.

The investigation will delve into whether Airtel has made false claims regarding the pricing of its services, potentially impacting its reputation and operations in the region.