Airtel Kenya has announced a new initiative where customers using Airtel Money will be reimbursed for their bank transaction fees in the form of airtime.
This move is seen as part of the telco’s strategy to attract more mobile money users and compete with market leader Safaricom’s M-Pesa service.
Speaking on Thursday, February 13, Airtel Kenya Managing Director Ashish Malhotra revealed that this benefit would also apply to users making bill payments across different local networks using Airtel Money.
“When you transfer money from your bank to your Airtel Money wallet, we will see what the bank has charged and we will give it back to you as airtime. The airtime has no expiry and you can keep it for as long as it takes,” Malhotra told Business Daily
The initiative builds on the “Rudishiwa Transaction Fee Campaign”, which was launched in December 2023. According to Airtel, this campaign reflects its commitment to providing cost-effective financial solutions for customers nationwide.
The company explained that when customers transfer money from their bank to their Airtel Money wallet, Airtel will match the transaction fee charged by the bank and refund it as airtime.
The airtime will have no expiry date, allowing users to redeem it whenever needed.
Airtel’s Growth and Market Competition with Safaricom
Airtel has been making aggressive moves to gain market share in Kenya’s mobile money and telecommunications sector, which has long been dominated by Safaricom.
According to the latest data from the Communications Authority of Kenya, Airtel’s mobile money user base has been growing steadily, but it still lags behind Safaricom’s M-Pesa, which holds over 90% of the market share.
To compete with Safaricom, Airtel has introduced affordable data plans, reduced transaction fees, and innovative offerings like Smarta Bundles, which provide customers with voice minutes across all networks, SMS, and data bundles.
These efforts are aimed at attracting price-sensitive consumers who are looking for more cost-effective alternatives.
With the introduction of this transaction fee reimbursement, Airtel is expected to strengthen its position in the mobile money sector and encourage more users to switch from Safaricom’s M-Pesa to Airtel Money.
Whether this strategy will significantly shift consumer preferences remains to be seen, but it signals Airtel’s determination to disrupt the market and grow its customer base.
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