Safaricom admits ‘My OneApp’ glitches, moves to fix issues

Safaricom, East Africa's dominant telecommunications operator and a critical bellwether for the region's digital economy, has publicly acknowledged significant technical failures in its migration to "My OneApp"—a consolidated customer platform intended to streamline access to mobile, financial services, and enterprise solutions. The admission, while transparent, exposes operational vulnerabilities in a company that European institutional investors have long viewed as a stable, dividend-generating play on African mobile penetration.

The migration disrupted authentication systems for diaspora customers and international roaming users—a particularly damaging segment given that Kenya's diaspora remittances exceeded $4.1 billion in 2023, making diaspora engagement a strategic revenue pillar. Customers attempting to manage accounts while abroad faced lockouts, unable to access critical functions including M-Pesa money transfers, bill payments, and service modifications. For a company whose valuation partly rests on financial services integration, this represents more than a technical setback; it reflects systemic weaknesses in infrastructure planning.

**The Broader Context**

Safaricom has aggressively pursued digital transformation over the past three years, positioning itself as a technology company rather than a traditional telecom. This repositioning is logical—voice revenues are under structural pressure across African markets, and integrated platforms promise higher customer lifetime value and cross-selling opportunities. However, the MyOneApp rollout demonstrates the execution risks inherent in such transformations, particularly when legacy systems spanning millions of customers must be migrated simultaneously.

The incident also illuminates a competitive reality: Safaricom's domestic market share (approximately 65% of Kenya's mobile subscribers) has created a false sense of operational invulnerability. When market dominance is this pronounced, the cost of errors—in customer trust, regulatory scrutiny, and brand perception—is magnified. European investors accustomed to mature telecom markets should recognize that African incumbents often underestimate technical debt and organizational capability gaps when executing platform consolidations.

**Market Implications**

For European institutional investors holding Safaricom shares (primarily via the Nairobi Securities Exchange or London-listed vehicles), this incident creates a near-term headwind. Customer complaints trigger regulator attention—Kenya's Communications and Media Authority has a track record of swift intervention—and reputational damage compounds investor concerns about management execution quality. Dividend sustainability, a key investment thesis for conservative European funds, depends on customer retention and service reliability.

However, the company's swift public acknowledgment of problems and commitment to remediation suggests institutional maturity. Unlike some African tech firms that obfuscate technical failures, Safaricom's transparency may actually preserve investor confidence longer-term. The question is whether fixes are genuinely implemented within weeks or stretch into months of intermittent disruptions.

**Investor Takeaway**

This moment will reveal whether Safaricom's digital strategy represents genuine competitive advantage or overstretched ambition. European investors should demand detailed remediation timelines and technical audit reports before interpreting this as a systemic management failure. Simultaneously, this creates a tactical opportunity for value investors willing to absorb short-term volatility in exchange for a recovery play.