Unraveling the Mystery of the M-Pesa Outage: Politics, Safaricom, and Government Interference

 

 This past Tuesday, a sudden and unexpected M-Pesa outage left many Kenyans stranded and frustrated. From motorists unable to pay for fuel to diners stuck with unpaid bills, and even parents struggling to prepare their children for school, the ripple effects were massive. Yet, beyond these inconveniences lies a deeper and more significant story—one that is deeply political and highlights the uneasy intersection of Safaricom, Kenya’s largest telecom company, and government interference.

The Silence from Safaricom

The most striking aspect of the outage is Safaricom’s response—or lack thereof. Days later, there has been no official explanation as to what caused the downtime. This silence is unusual for a company as critical to Kenya’s economy as Safaricom, especially given that M-Pesa is now a national security concern.

The Communications Authority of Kenya (CA) has the power to fine Safaricom up to 0.2% of its gross revenue for such service failures, as it did in 2017 when Safaricom was penalized KSh 270 million for subpar call quality. Despite this, many believe no punitive action will be taken. Why? The answer may lie in political dynamics.

Safaricom and the Ruto Administration

Since President William Ruto took office, Safaricom has undergone significant changes. Former board chairman John Ngumi resigned after only five months, while Michael Joseph, the founding CEO and a pivotal figure in Safaricom’s success, also stepped down from the board. These moves raised eyebrows, particularly as Ngumi was closely linked to former President Uhuru Kenyatta. The new board appointments have strong ties to the current administration, leading to speculation about government influence over Safaricom.

This speculation is further fueled by persistent rumors about attempts to link M-Pesa to Kenya Revenue Authority (KRA) systems. Such interference would align with a pattern seen across various sectors where government-connected individuals allegedly exert undue influence to control lucrative operations.

Government Interference: A Consistent Pattern

The Ruto administration’s alleged interference with Safaricom mirrors similar actions in other sectors. For instance, the chaos surrounding KCPE and KCSE exam results revealed how external meddling compromised the integrity of these processes. Experts were sidelined, and decisions were made with little regard for potential consequences.

This behavior raises concerns about the government’s approach to private enterprises and institutions. Interference risks destabilizing critical organizations, with far-reaching consequences for Kenya’s economy and public confidence.

The Importance of Safaricom

Safaricom is not just a company—it is a lifeline for millions of Kenyans. M-Pesa enables countless businesses, supports livelihoods, and plays a pivotal role in daily transactions. Any disruption, especially one perceived as politically motivated, undermines trust and creates uncertainty.

While the true cause of Tuesday’s outage remains unclear, public perception is critical. Rumors about government interference, whether accurate or not, gain traction in the absence of transparency. Safaricom’s silence only exacerbates the situation, fueling speculation and raising questions about the company's autonomy.

A Cautionary Tale

The lesson here is simple: overreach by any government into private enterprises is a risky path. Safaricom’s success is a testament to innovative leadership and operational independence. Undermining this through micromanagement or political interference could have dire consequences—not just for the company but for the country as a whole.

As Kenyans await answers, one thing is certain: in the year 2024, the truth will eventually come to light. Until then, the Safaricom outage remains a cautionary tale of the dangers of politicizing critical institutions.