The regional competition watchdog has launched a probe into Airtel Kenya’s operations over suspicion of violating international money transfer regulations.
The COMESA Competition Commission (CCC) is accusing the telco of engaging in misleading consumer practices, contrary to the International Money Transfer (IMT) services regulations across the region.
The investigation will focus on potential breaches of Articles 27 and 28 of the regulations, which prohibit misleading consumer practices and unconscionable conduct in business transactions.
These articles mandate that companies disclose accurate information regarding charges, exchange rates, and third-party involvement in transactions.
Read Also: Airtel Money market share grows as M-Pesa sees decline
Preliminary findings suggest that Airtel’s subsidiaries in Malawi, Kenya, and Uganda may not be providing full disclosure to consumers during IMT transactions.
In Kenya, the displayed charges before confirming a transaction sometimes differ from the final charges, while in Malawi, details about the sender, charges, and intermediary parties are allegedly not revealed.
“The Commission, through its surveillance, became aware of possible violations of the Regulations in the course of IMT by Airtel Mobile Commerce B.V., through its subsidiaries in the Common Market,” said COMESA Competition Commission CEO Willard Mwemba.
The CCC says that in the case of Airtel Mobile Money Kenya, the charges displayed to the sender before confirming the transaction are, in some instances, different from the actual charges indicated in the final confirmation message and details of the intermediary parties, as well as the exchange rate used, which are not disclosed to consumers.
In Uganda, discrepancies between the displayed exchange rate and the actual rate used are also under scrutiny, along with concerns that consumer information may be shared with intermediaries without adequate transparency.
“The alleged conduct is concerning as it may mislead consumers and prevent them from making informed decisions about their financial transactions,” added Mwemba.
“We are committed to thoroughly investigating this matter to ensure that consumers’ rights are protected.”
The CCC is calling on interested stakeholders, including affected consumers, to submit any relevant information by February 28, 2025.
Currently, Airtel operates in 14 countries across Africa, including Kenya, Chad, Congo-Brazzaville, Gabon, Madagascar, and Malawi.
Others include Mali, Mozambique, Nigeria, Sierra Leone, Togo, Uganda, Zambia, and Rwanda.