The COMESA Competition Commission has launched an investigation into Airtel Money over alleged misleading practices in its international money transfer services across Kenya, Uganda, and Malawi. The probe centers on claims that the company hasn’t been fully transparent about transaction charges and exchange rates.
According to the Commission, customers have reported receiving final confirmation messages with charges different from what they initially saw. The investigation also draws attention to concerns about undisclosed intermediary fees and inconsistent exchange rates, particularly in Uganda where customers noticed discrepancies between displayed and applied rates.
Airtel has been making considerable developments in Kenya’s mobile money market. The company’s market share has jumped from 2.9% to 7.6% in the year leading to September 2024, taking a bite out of M-PESA’s dominance, which slipped from 98% to 92.3%.
This growth has been spurred by Airtel’s competitive pricing strategy, including eliminating fees for Airtel-to-Airtel transfers and charging less than M-PESA for common transactions.
To address its historically limited presence, Airtel has been expanding its reach through strategic partnerships, including a deal with Naivas supermarkets to increase its agent network. This expansion comes as Kenya’s mobile money sector reaches new heights, with subscriptions hitting 40.6 million and a penetration rate of 78.9%.
The Commission has invited stakeholders and affected consumers to submit their comments by February 28. While the investigation doesn’t presume guilt, it will determine whether Airtel’s practices violate Articles 27 and 28 of the COMESA Competition Regulations, which protect consumers from misleading information and unconscionable conduct.
Airtel Mobile Commerce has not yet responded to the allegations.
