This archive report was first published on 3 November 2021.
On Tuesday, Safaricom responded to Airtel's claims that it is a dominant player in the telecommunications market by urging Airtel to work harder and invest more in the industry.
During a session with the Senate Standing Committee on Information and Technology, Safaricom's CEO, Peter Ndegwa, emphasized that competition is healthy and that any player can build its market share through increased investments and innovation.
“Safaricom does not have any market power and therefore Safaricom cannot act independently of other players and consumers,” Ndegwa said. “It is our position that there should be no adverse regulatory actions that would stifle the growth of the industry. There is room for great investment in the industry and we look forward to seeing additional investment by other players into the market.”
Safaricom's defense came after Airtel presented its case to the committee, accusing the Communications Authority of dragging its feet in declaring Safaricom a dominant market player.
Airtel argued that declaring Safaricom dominant was not the equivalent of punishing success, stating that Safaricom has heavily invested in infrastructure to attain its current status, which other players in the market have not.
However, Safaricom highlighted its tax obligations, saying it was currently the highest tax payer among all local corporates. “Through our operations in the Kenyan economy, we have created additional government revenue of approximately Sh. 83 billion per annum over the past decade as a result of upstream and downstream economic activity. In the last financial year alone, Sh. 105.9 billion in taxes, duties and licence fees was paid by Safaricom,” said Safaricom.
