Now you see, now you don’t: How telcos are defrauding Kenyans with expiry data

Parliament has told the Communications Authority of Kenya (CAK) to stop the “fraud” perpetuated by telcos in the country in the name expiring data bundles.

Instead, the MPs want the communications regulator to force internet providers Safaricom, Airtel and Telkom to compensate their customers for unused bundles.

The National Assembly’s Communication, Information and Innovation Committee blamed CAK Director-General David Mugonyi for having in place insufficient measures to protect consumers from Internet service disruptions through the controversial data bundle expiry policies.

Mr Mugonyi was appearing before the committee chaired by Dagoretti South MP John Kiarie at Parliament buildings yesterday.

Also in the MPs’ radar was the lack of insufficient consumer protection framework and a clear mechanism for addressing complaints.

The members expressed frustration regarding Internet service providers’ current practices and demanded that the Authority enforces stricter oversight and accountability measures to ensure users do not lose bundles.

“We are calling for more robust consumer protections mechanisms. Several other countries have implemented no-expiry policies on data bundles. If other jurisdictions are moving towards no-expiry policies, there is no reason we cannot do the same here. Consumers deserve data packages that give them full value for their money,” said Kiarie.

The MP pointed out that radio stations publicly air quality-of-service issues and wondered why the Internet service providers do not implement similar practices. He also wondered why the providers cannot alert consumers about expected downtimes, quality issues, or even compensation policies.

Kisii Woman Representative Doris Aburi questioned CAK on why data bundles expire before consumers can fully utilise them. Ms Aburi argued that consumers would not be losing their money if bundles worked like other utilities, adding that expiration of bundles constitutes an unfair loss for users who cannot fully utilise the service they have paid for.

Tetu MP Geoffrey Wandeto termed the short-term data packages a fraud, arguing that the validity of data bundles is often too short for consumers to use the full amount they purchased. He wondered how someone can realistically consume 20 GB of data within an hour, labelling these short-term expirations as exploitative.

Mr Mugonyi acknowledged that there were gaps in the current regulatory framework, specifically in enforcing mandatory consumer compensation.  Mugonyi explained that CA has previously penalised Internet Service Providers for past violations.

Mugonyi told the MPs the Kenya Information and Communications Act (KICA) 1998 lacks clear provisions to mandate compensation for consumers during service disruptions.

“I would like to assure Kenyans that the Communication Authority is committed to expanding monitoring systems and refining oversight on the more than 500 licensed Internet Service Providers to enhance accountability and service quality,” said Mugonyi.

Bomachoge Chache MP Alfah Miruka asked if these initiatives would be effective in the absence of legally binding consumer protection measures and asked the regulator to impose penalties that directly benefit consumers rather than imposing fines that go unclaimed by those affected.

The committee urged the CAK to ensure that Internet service providers prioritise customer service and adopt fair compensation measures, calling for consumer data to be treated with the same standards as other essential utilities.

Aldai MP Marianne Kitany has already tabled a Bill in the National Assembly that seeks to ensure that Kenyans are not exploited by Internet service providers by putting in place a metred billing system for data usage.

The Bill seeks to revolutionise the Internet billing system in Kenya by introducing a metering system to ensure fairness and transparency for consumers.

Kitany said Internet service providers often charge blanket rates, leading to overbilling without accountability. She said consumers deserve value for their money. “Internet service providers know that consumers will not use all data bundles they purchase leading to huge profits.”