This archive report was first published on 5 January 2022.
On January 1, 2022, the Communications Authority of Kenya (CA) implemented a significant reduction in mobile termination rates (MTR), cutting it from Sh0.99 to Sh0.12. This move has been met with opposition from Safaricom, which has applied to the Communications and Multimedia Appeals Tribunal to reverse the decision.
The Consumer Federation of Kenya (Cofek) has come out in support of CA's decision, arguing that it will greatly benefit consumers by reducing calling charges. Cofek has applied to be enjoined in the case, citing that the rights of consumers would be infringed if CA is not allowed to implement the reduced rates.
According to Cofek, Safaricom's opposition to the reduced MTR is 'predatory, outrageous, unreasonable, punitive, irrational, unfair, unjust, oppressive, unjustified, unlawful, illegal and offends the spirit and provisions of the Constitution of Kenya.' The lobby group further accuses Safaricom of misleading the tribunal by claiming that lowering MTR will result in revenue losses without factoring in the expected economies of scale.
The mobile termination rate has been falling gradually from a high of Sh4.42 in 2011 to the current Sh0.99, which has been in place since 2015. Cofek argues that the rate should have been lowered further or eliminated altogether, given Safaricom's massive profits from its diverse array of services and the ever-rising number of subscribers.
The hearing of the application is set for Wednesday, with the tribunal expected to listen to presentations from Safaricom, CA, Cofek, and any other party that may be enjoined in the suit before making its final decision.
