Central Organisation of Trade Union (COTU) Secretary General Francis Atwoli has criticized Safaricom CEO Peter Ndegwa, calling him "insensitive and inhuman" for implementing a restructuring plan that requires 6,000 employees to reapply for their roles. Atwoli, who has led COTU for years, has remained silent on worker conditions at the Nairobi Industrial Area facility, where employees describe working environments as harsh and dehumanizing.
Safaricom faces repeated allegations of abusing its dominant market position, including intellectual property theft, unauthorized data sharing, and bullying smaller telecom operators. These claims have led to multiple court cases, raising questions about Ndegwa's role in the company's controversies.
Atwoli's criticism follows revelations that Ndegwa, who took over as CEO in April 2021, was allegedly misled about key business decisions. For example, Safaricom launched an anti-fraud security feature in 2021 that mirrored an idea proposed by tech innovator Anyona Obutu without credit. A separate 2021 incident involved the MPESA Bill Manager service, which duplicated a registered utility model belonging to Kibo Capital Group Limited, leading to copyright infringement claims.
The controversy extends to Safaricom's public relations strategies. In 2021, the company used fake social media accounts to defend itself against IP theft allegations, a tactic criticized as deceptive. Meanwhile, Safaricom's reliance on WPP Scan Group for crisis management has drawn scrutiny, particularly after the PR firm faced its own scandal.
Industry observers note that Ndegwa, a relative newcomer to Kenya's corporate landscape after leading Guinness Nigeria and European operations, may be navigating a complex power structure. Critics argue the telecom giant must address longstanding issues, including compensating IP rights holders, overhauling third-party vendor contracts, and apologizing for past missteps like the CHEZA Games Heist incident.
Legal documents and internal communications suggest ongoing investigations into Safaricom's business practices. The company's semi-government ownership structure, with significant state shares, adds another layer of complexity to the debate over accountability and corporate governance.
Allegations against Safaricom span multiple years, including a 2012 claim that the company stole an idea for M-Shwari from Faulu Kenya, a 2017 case involving the M-Pesa 1 Tap concept, a 2010 dispute over a reverse call feature, and a 2019 lawsuit related to a Sh10 million song. These incidents highlight recurring patterns of intellectual property disputes and legal challenges.
