Safaricom losing subscribers outside Kenya

Although, it's the most profitable and reportedly, with the cheapest rates in East Africa, Safaricom's subscribers in Uganda are complaining about the newly introduced exorbitant calling and short message (sms) rates in Uganda. Previously, the subscribers, most of whom are Kenyans, were being charged Kshs 8 (Ushs192) per minute on Ongea Tariff, and relatively the same charges on other tariffs like the belated Jibambie. This has been increased by over 200 pc. The rates now stand at between Kshs 25 (Ushs 600) to Kshs 28 (Ushs 672) per minute and Ksh 10 (Ushs 240) for a text message.
"Safaricom is charging us expensively," remarked Scola Kamau, a Kenyan student in Uganda, adding that she has reverted to MTN which is relatively cheaper now.
This is hurting Safaricom's subscriber base in Uganda as it is losing out most of them to ZAIN and MTN (Mobile Telecommunications Network), the biggest mobile network in Uganda. MTN is comparatively cheaper, especially on its MTN Zone tariff, which is rated on percentages. Calls are as cheap as almost no or negligible charges when the percentage is high at 90pc or more.
When contacted to explain the phenomenon, a Safaricom customer care personnel claimed the tariffs for Safaricom subscribers who go out of Kenyan borders will not be the same as was the case. The roaming service, a new name for tariffs charged for its customers who go out of Kenyan borders, is the burden that many a Kenyan Safaricom subscribers in Uganda are trying to avoid like a plague.
The exorbitant taxation system in Kenya could be one of the reasons for the hike in tariffs that will mostly hurt subscribers outside of Kenya. Currently, the (VAT) Value Added Tax is as high as 26per cent, and it could be more, hurting investors, even though they rake in millions or billions of shillings in profits each year.
However, what explains the new charges is a technical hitch the Telecommunications Company experienced in late January this year. For about two days, it was glee for Safaricom subscribers in Uganda whenever they would top up their accounts with MTN credit cards. A top up of Ushs 500 (approximately Kshs 20) would recharge the subscriber's account to Kshs 2000 (more than Ushs 48,000).
Taking advantage of the technical hitch, some people would top up to as much as Kshs 200,000 (approximately Ushs 48,000) and transfer as much as they wanted," said Innocent Masaki, who works as a customer care agent with ZAIN in Uganda.
He personally topped up more than Kshs 150,000 (approximately Ushs3.6million) though he wouldn't transfer more than Kshs 10,000 (about Ushs 240,000) per day. However, the lucrative exploit was short lived as all sim cards was blocked but activated with a credit-less account.
"Safaricom must have made losses and they want to recoup the money they lost during the technical error," says one subscriber. "We are all paying for the sins of a few people."
"I have money but I fear to top up," said Wyclieff Mugun. He is as well considering purchasing an MTN line. "Safaricom is for receiving only," he added.
And, indeed, Safaricom might also pay for the exodus of a few of its subscriber base to its local competitor or to its Ugandan counterparts MTN.
Joshua Masinde