A formal complaint has been filed with Kenya’s competition regulator against Safaricom, alleging that its exclusive M-Pesa transaction fee waiver for the Ziidi Money Market Fund is an anti-competitive practice that distorts the retail investment market.
Safaricom Hit with Antitrust Complaint Over Exclusive M-Pesa Deal
NAIROBI, Kenya – June 4, 2025
Safaricom, Kenya’s telecom and mobile money powerhouse, is under regulatory scrutiny following a formal antitrust complaint filed with the Competition Authority of Kenya (CAK). The complaint centers on a controversial deal that grants zero-rated M-Pesa transactions exclusively to the Ziidi Money Market Fund, a move critics argue distorts the competitive landscape of the country’s fast-growing retail investment sector.
At the heart of the complaint is the allegation that Safaricom is abusing its dominant market position by selectively waiving M-Pesa transaction fees for a single financial product. While consumers using the Ziidi fund benefit from cost-free mobile money transactions, rival money market funds and digital investment platforms must continue absorbing or passing on M-Pesa fees to their clients—placing them at a distinct disadvantage.
“This is not just a business strategy—it’s potentially a case of market manipulation,” said a source familiar with the complaint. “When a player with Safaricom’s reach and influence picks a favorite, it tilts the scales in a way that stifles innovation and undermines fair competition.”
Kenya’s fintech ecosystem—celebrated as one of the most vibrant in Africa—relies heavily on equal access to digital payment infrastructure. M-Pesa, with over 30 million active users, is deeply embedded in the financial lives of millions. Critics argue that offering transaction fee waivers to a single fund effectively creates a pay-to-play environment, where only select partners can thrive.
Industry players warn that such preferential arrangements risk creating an uneven playing field, discouraging smaller or emerging firms from innovating or entering the market.
The Competition Authority of Kenya has confirmed receipt of the complaint and is currently reviewing its merits. Should the CAK find grounds for concern, a formal investigation could be launched—one that may have far-reaching implications for how dominant digital platforms structure exclusive deals going forward.
Safaricom has yet to issue a public response to the allegations.
As Kenya continues to solidify its reputation as a fintech hub, the outcome of this case could set a critical precedent for digital competition law and corporate accountability in the region.
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