Safaricom PostPaid Is Here To Stay As M-Shwari Starts Loaning Smartphones


2014 saw Safaricom announce that it would terminate its PostPaid service dubbed Karibu by May this year, saying that the service was only bringing losses to the telecom’s table.

The move meant that following the announcement, there would be no more registration of subscribers for the service in the hope that getting rid of the service would reduce the losses.

Now, the telecom has hinted that it is retracting the tariff cancellation call to continue offering its PostPaid customers the service, but users should expect a few changes either in the bundle prices or to reduce the bundle size on the current rates, reports the BusinessDaily.

With at least 100,000 Safaricom customers being subscribed to the Karibu PostPaid service, the telco may have seen a better way out that would retain customers as well as achieve profitability to avoid loosing users to its rival telecoms.

The PostPaid service offers bundle services consisting of data bundles, talk time, as well as text messages at a monthly fee of either KSh 2,500 or KSh 1000 to be used on the Safaricom network and outside the network as well.

Even as many people may fear or have reservations about entering into the service, the PostPaid option may be the best bet for people who are used to talking on the phone for long hours, but it does not favour the texting generation or internet addicts as it is limited than the Prepaid option.

Customers should expect more information on the tariff changes in April, with plans to take effect the following month, May – the same month the service was scheduled to become unavailable.

And in a new light for the telco’s customers registered to the M-Shwari service and wanting to make a smartphone purchase but do not have enough money at hand to buy the device, M-Shwari will loan you as the customer, money to buy the phone.

Through a partnership with various smartphone companies in the Kenyan market, the M-Shwari loan to buy both phones and tablets will be eligible to persons who deposit 30 per cent of the device’s purchase price beforehand, after which the loan advancement will take place.

Loans will be given from a minimum amount of KSh 1000 and the maximum amount standing at KSh 50,000, which is set to be paid by the customer in a period of six months without failure.

In the case the loan is not paid within the given time, the borrower will be charged KSh 200 for every installment overdue and Safaricom can terminate the call service, texting service and data services as well as entirely disabling the device if payment is not made.

The telco, which launched its 4G network service last year, hopes that this new M-Shwari loan service will help grow the number of devices that connect solely to its network.


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