Safaricom PLC Chief Executive Officer Peter Ndegwa
| Jeff Angote | Nation Media GroupBusiness
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Stop whining, work hard, Safaricom tells its rivals
Your failure to catch up with us is not of our making, Safaricom has told its rivals.
The giant telco yesterday said competitors have failed to work hard, invest and innovate and, therefore, cannot complain of its enviable position in the market.
Safaricom chief executive Peter Ndegwa yesterday told senators that what the firm has done is capable of being replicated by any company should they undertake the same level of investment.
“We didn’t start out at the top of the market but through great investment and innovation, we’ve attained our current position and with the support of Kenyans, we’ll continue to raise the flag of innovation and access to connectivity within and beyond Kenya,” Mr Ndegwa said.
He was making a statement to the Senate Standing Committee on ICT in a virtual meeting in response to nominated senator Petronilla Were’s accusation that the giant telco was involved in monopolistic practices.
Better services
The telco boss said its competitors had failed to invest in critical infrastructure, which has led customers to opt for Safaricom for better services.
Safaricom, he said, invests over Sh34 billion annually to maintain and expand its network and provide reliable connection and data services.
He said competitors had shied away from building and running their own infrastructure.
“They don’t own any base stations, they don’t invest in fibre connectivity, they don’t invest in call centres. We believe that by being able to deploy our own network and the connectivity required to ensure quality of service, Safaricom provides customers with a better option, which is reflected in our market position,” Mr Ndegwa said.
Despite the firm’s extensive investments in infrastructure and personnel, it’s not immune to competition, he said. Its market share stood at 80.7 per cent in 2010, but had dropped to 64.2 per cent as at June, he said.
As such, Mr Ndegwa said, Safaricom’s position is dynamic and it has to constantly respond to the market with products and pricing to secure its status.
Safaricom, he said, “does not have significant market power as has also been noted by the Competition Authority of Kenya (CA) through their submissions to (this) Senate Committee on April 14, 2021.”
Revenue streams
The giant telco’s CEO added that the company has not undertaken any activity that has lessened the ability of its competitors to compete.
Safaricom, he added, has been able to expand into many areas of service, thereby increasing its revenue streams beyond those its rivals are seeking to compare with.
