Airtel lodged a complaint with the competition watchdog over Safaricom charging voice calls for as low as 10 cents a minute, underlining the rivalry between Kenya’s top two telecoms operators.
The Competition Authority of Kenya (CAK) revealed that Airtel accused Safaricom of running a promotion with voice charges that were below the mobile termination rate (MTR), which is the rate mobile phone operators charge each other for calls made across networks.
Airtel reckons that Safaricom charged between Sh0.1 per minute and Sh0.3 per minute, arguing that it was below the MTR of Sh0.41 and termed the action predatory pricing, which hurts small operators.
Predatory pricing refers to a firm that sets the price of a product below cost to incur losses in order to eliminate or deter the entry or expansion of a competitor, with the expectation to later raise the price and recoup any losses.
The competition watchdog dismissed Airtel’s grievances, arguing that Safaricom had not breached the law in running the discounted promotion in under 90 days.
The law allows firms to run promotions for 90 days and pause for three months before returning the discounted prices.
“It was established that the promotion was restricted to a maximum of 90 days as provided under the Kenya Information and Communication Act and Regulations and could be repeated for at least three months to safeguard any negative impact on competition,” the CAK added.
“The matter was therefore closed.”
This delivered a blow to Airtel, which has previously called on the competition watchdog to take a tough line on dominant operator Safaricom.
The CAK earlier maintained that it had not found any evidence of Safaricom, which has a 67 percent market share, abusing its dominance in any of its business sectors, arguing there was no need for regulatory action—including calls for price controls to help smaller operators.
Globally, the MTR is viewed as the lowest cost possible for a voice call, deeming any tariffs below the rate as undercutting rivals.
Being a competition query, Airtel opted to raise the matter with the competition watchdog instead of the Communications Authority of Kenya (CA).
While the competition watchdog closed the matter after assessing the promotion to be above board, the probe underlines the bitter rivalry between Kenya’s second and top telecoms operators for control of the market.
Previously, the pair had fought over the determination of the mobile termination rates and dominance.
Airtel has been slowly eating into Safaricom’s significant market share, intensifying the competition between the two firms.
“Airtel Networks Kenya Limited alleged that Safaricom Plc had been running a promotion in which they offered voice prices that were below the current MTR of Sh0.41 per minute. Specifically, the allegations related to an offer dubbed ‘Ofa Moto’,” the CAK said in disclosures.
“According to the complainant, a quick calculation of these offers showed that customers were being charged Sh0.1 per minute and Sh0.3 per minute respectively, including taxes.”
The promotion referenced by Airtel referred to Safaricom’s Tunukiwa offers, which gave customers offers for 100 minutes talk time for Sh10 up to midnight, 30 minutes talk time for Sh10 and 60 minutes for Sh20.
Safaricom was also observed to have offered unlimited calls within a one-hour window for only Sh20.
Airtel alleged the conduct by Safaricom had amounted to both exclusionary abuse and predatory behaviour in its filings to the competition watchdog.
The Kenya Information and Communications (Tariff) Regulations, 2010 require telecoms operators to set ‘just and reasonable’ tariffs which allow industry players to maintain financial integrity, attract capital, operate efficiently and fully compensate investors for risks borne.
The regulations dictate that applied tariffs shall not prevent market entry or distort competition.
The CA, however, issues guidelines for promotions and special offers.
Promotions and offers are restricted to 90 days and should not be repeated within three months following the lapse of the discount tariff window.
In its assessment, the CAK deemed that the promotion by Safaricom had not breached the duration set in the CA regulations.
Safaricom has been losing market share, with fresh data showing a gradual erosion of its dominance in the mobile money and fixed internet segment.
Safaricom’s subscribers market share stood at 66.8 percent in December from 72.6 percent in June 2017.
Its share of voice traffic slightly improved to 62.2 percent from 61.1 percent in September 2025.
Airtel’s share of voice traffic fell slightly to 37.5 percent from 38.5 percent in the same period.
In 2021, Safaricom came out to defend itself against accusations by Airtel of abusing its market dominance and stifling competition in the telecommunications industry.
Safaricom told the Senate, at the time, that competition in the industry was healthy, and that other players could build their market share through investment and innovation.
The firm also said it lacked market power as it could not act independently of the other players.
The CA has never declared Safaricom a dominant market player in the telecoms industry.
Both the CA and the CAK have previously said there is no evidence that Safaricom has abused its dominance.
