MPESA Services Back, Safaricom Apologizes

Listed telco Safaricom’s mobile money transfer service, MPESA suffered a hitch on Tuesday, January 9 with its millions of its customers across the country experiencing delays for hours. 

Kenyans attempting to access the platform were notified that it was undergoing routine maintenance.

“Dear Customer, MPESA is currently undergoing maintenance and is unable to process your request,” the pop-up message indicated. 

Many took to social media to complain that the unexpected interruption has disrupted their personal plans and businesses.

Besides, the outage appeared to affect M-PESA services on both the STK and the App.

The giant telecommunication firm later confirmed that it had resolved the hitch.

“All M-PESA services are now available. We apologize for any inconveniences caused and thank you for your patience as we worked to restore services,” said Safaricom in statement seen by The Kenya Times.  

Safaricom had explained that the disruption was due to a technical hitch and resolution is underway.

“Hey Child of God, apologies for the inconvenience caused. We are experiencing a technical hitch with the M-PESA system and resolution is ongoing kindly be patient as we address,” Safaricom Care replied to a customer on X.

However, Safaricom promised Kenyans that they were looking into the issue for resolution as soon as possible.

Further, the telco urged some of the users to share their challenges for assistance.

“Hi Eddy, our apologies for the experience, please share the challenge you are facing, for assistance, you may DM the details,” Safaricom replied to one of the customers.

MPESA Disruption Reactions

Kenyans on social media slammed Safaricom for the unannounced MPESA maintenance. 

Journalist Edgar Wabwire on his X account said the company should always inform customers of such planned disruptions.

“Safaricom should always make a prior communication before maintaining MPESA services. Sasa a whole Journalist nakaa mkora kwa like ya supermarket,” he complained.

Another X user named Collins Ntonja explained that the abruptness of the maintenance can make customers wonder whether their money is safe or not.

Also Read: Safaricom Call Revenue Drops in Half Year Results

“The sad thing about this Mpesa crash, is that there is no communication whatsoever from Safaricom. We don’t even know if our money is safe. As a customer, I’m disappointed,” he said.

Additionally, X users questioned why Safaricom is doing its maintenance during the day when most customers are active.

“Safaricom is a company with over 30 million daily customers in Kenya, doing its maintenance a time like this is crazy,” said Jimmy.

“So Mpesa is undergoing scheduled maintenance during day light hours? Seriously?” asked Jusper Mogire.

Safaricom Needs a Competitor

Notably, some of the users opined that Safaricom needs a competent and robust competitor to its mobile money services.

An X user Mbiti Mwondi MD said he could make timely transactions and was held for an hour.

Further, he said the other telecommunication companies are not taking advantage of Safaricom’s disruptions.

“More than ever, we need a competent and robust competitor to Safaricom’s Mpesa. Nimeteseka sana over the last one hour trying to make timely payments. Those guys have literally held us by our balls. You can’t transact from the bank to Mpesa and vice versa or mpesa to any other form of payment. Guys in fintech are really sleeping on this huge virgin opportunity,” he said.

“At this rate Mpesa needs a very serious competitor things are getting out of hands,” said MR Right.

Mobile banking affected

The Kenya Commercial Bank (KCB) has also confirmed that it was experiencing delays in M-PESA transactions.

In a statement, KCB said it will inform the customers once the problem is resolved.

“Dear Customer, we are experiencing delays on all M-PESA to bank & bank to M-PESA services. We shall advise you once the issue has been resolved by our partner. Thank you for your patience,” said KCB.

Also Read: Safaricom Shares Hit a Record Low at NSE

Safaricom MPESA Full Ownership

In October 2023, Safaricom gained complete control of M-PESA, previously owned by Vodafone International Holdings BV.

The Company confirmed that the agreement was made in April of the same year to affect the transfer of all shares from Vodafone BV to Safaricom.

“On 17th April 2023, Safaricom entered into a share purchase agreement with Vodafone International Holdings B.V. (Vodafone BV) for the transfer of one hundred percent (100%) shareholding in M-PESA Holding Co. Limited (M-PESA Holding) from Vodafone BV to Safaricom,” read the statement.

Further, Safaricom said the ownership transfer observed all requirements and conditions needed for such processes.

Also, Safaricom said the notice constitutes an announcement duly informing the public of the successful completion of the Transaction.

However, Safaricom said M-PESA Holding will continue to act as the corporate trustee of the M-PESA trust funds.