The Competition Authority of Kenya (CAK) has directed Safaricom to create transparency for customers of its Lipa Na Mpesa mobile payment service. CAK has ordered Safaricom to run a promotion in electronic, prime time and print media for at least fourteen days to inform consumers that using the Lipa Na MPESA service at petrol stations may attract a fee of 0.5 percent of the transaction value.
This follows a complaint received on 23 January of non-disclosure of charges payable by consumers for use of Lipa Na Mpesa at petrol stations and merchant shops said CAK Director-General Wang’ombe Kariuki.
Kariuki also ordered Safaricom to educate customers that charges to the service can be accessed via the *234# USSD code. Safaricom is required to distribute Point of Sale (POS) stickers to all merchant outlets and points of sale and Fuel Tent Cards emphasizing clearly the 0.5 percent or any other applicable charge on the transaction value. CAK said circulating the Fuel Tent Cards should be finalised by 31 August and for merchant POS by 30 September.
Safaricom was also ordered to educate consumers in future by changing POS materials to reflect any new charges that might be introduced by Lipa na Mpesa merchants who are currently not charging for the service.