Competition Authority orders Safaricom to create billing transparency to Lipa na Mpesa customers

NAIROBI, KENYA: Competition Authority of Kenya (CAK) orders Safaricom to disclose to consumers charges made on lipa na Mpesa service.

The Authority said this follows a complaint on the non-disclosure by East Africa’s largest telecommunication company of the charges payable by consumers for use of its Lipa Na Mpesa service in petrol stations and merchant shops across the country.

“After taking investigations pursuant to consumer protection mandate, we order Safaricom to undertake a campaign in both electronic and print media to sensitize Kenyans on Lipa Na Mpesa billing,” said Wangombe Kariuki, Director General Competition Authority.

“We want Safaricom to inform Kenyans that settling bills through Lipa Na Mpesa service at petrol stations currently may attract a fee of 0.5 per cent of the transaction value and that application charges can be accessed through the *234# USSD code,” he said.

The Authority also wants Safaricom to educate consumers by changing Point of Sale (POS) materials to reflect any new charges that will be introduced by Lipa Na Mpesa merchants who are currently not charging for the service.