34 / 84
Safaricom Sustainability Report 2016
34
Last year, we began requiring all new business partners to sign up to the Code of Ethics for Businesses in Kenya during the
onboarding process. This year we expanded this requirement to all of our suppliers. We hosted a supplier forum breakfast,
during which we raised awareness of the Code and encouraged existing suppliers to sign up. To date, 269 or 81% of suppliers
with running contracts have signed up.
We also hosted an Anti-Corruption Conference in partnership with the UN Global Compact Network Kenya in December
2015. Opened by the Kenyan President, Uhuru Kenyatta, the event brought together over 400 high-level representatives
from the private sector, government, international organisations, civil society and the media to discuss the critical role of
the private sector in stemming the tide against corruption and the importance of all stakeholders — public, private and
civil society — to unite against corruption. (For further information about this event and the work of Safaricom CEO, Bob
Collymore, as a member of the UNGC Anti-Corruption Working Group, please see the ‘Society’ report on page 70.
REGULATORY COMPLIANCE
Ensuring that we remain compliant with regulatory requirements is necessary, not only to make sure that we are operating
in a lawful manner and to the correct standards, but also to avoid exposure to the remedial measures available to the
regulators, such as onerous fines, non-financial sanctions and, ultimately, the revoking of our operational licence
Our response to this is primarily managed by assessing our processes against applicable laws to ensure that we are
compliant and reviewing the effect of changes in legislation on our internal processes. We also proactively engage with our
regulators on all issues through a variety of channels (please see the Stakeholders section on page 72 of this report for further
information about this important relationship).
Non-compliance register
FY16
FY15
FY14
Number of fines for non-compliance
1*
1*
1*
Cost of fines for non-compliance (KSh)
157,000,000
500,000
500,000
Non-monetary sanctions for non-compliance
0
1
0
Legal actions lodged for anti-competitive behaviour
2
†
0
1
*
Communications Authority of Kenya (CA) Quality of Service (QoS) fine
†
Escalated actions lodged before the Competition Authority (outcome pending)
Along with every other mobile network operator in Kenya, we were fined by the Communications Authority of Kenya (CA)
again this year. The CA is mandated by government to ensure that operators are delivering services of an adequate quality
and, accordingly, the CA tests every operator against eight Quality of Service (QoS) measures it has developed on annual
basis. Operators that fail to meet any of these criteria are fined. The results of these tests are made available to the public
and published on its website.
President Uhuru Kenyatta speaking about the need for the government and the private sector to fight together in the ‘war against corruption’ at the 17
th
Working Group
of the 10
th
Principle against Corruption and International Anti-Corruption Conference in Nairobi, December 2015.