Safaricom Avoids Sh400 Million Fine Over April’s Network Outage

Safaricom CEO, Bob Collymore(right) , on May 10,2012 during a breakfast meeting at Safaricom Headquarters Nairobi during the announcement of Safaricom financial result for 2011/2012

Safaricom Limited has escaped having to pay a penalty which was to be issued by the Kenya Communications Authority (CA) following a nationwide outage in April.

According to the telecom company’s CEO Bob Collymore the outage which started at 9 am and lasted for around an hour was caused by two failing routers in one of their main data centers.

The outage is reported to have crippled data, SMS, and M-PESA services among others.
As a result the CA carried out an investigation and insisted that they would fine the company should they find any direct involvement in the outage.

Read: Safaricom Planning To Complete Photo ID Registration By December

The company would have been fined up to Sh420 million but investigations revealed that the company had no control nor direct involvement in the matter thus absolving it from any liability.

According to CA’s Director General Francis Wangusi, Safaricom has been issued a warning for now since the company had no direct involvement.

Fines for such carry between Sh500,000 to 0.2% of the gross turnover depending on the damage. However, the telecom company has submitted a report to the ICT authority and the Central Bank of Kenya.

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Written by Kahawa Tungu


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