Sustainability Report 2016

Safaricom Sustainability Report 2016

REGULATORS

Regulatory bodies are the means through which the people

of a nation can supervise the activities of organisations like

companies and the fundamental goal of any regulator is to

protect the safety and interests of the public. We are overseen

by eight regulatory authorities in particular and our chief

regulator is the Communications Authority of Kenya (CA).

What are their needs and expectations of us?

Our services play an important and sometimes even critical

role in the daily lives of Kenyans. As a result, the regulators expect us to provide these services in a reasonable, responsible,

ethical and environmentally sensitive manner, providing customers with adequate information and support to access and

enjoy our services, while respecting their rights. Our regulators also require us to compete for business fairly and to play our

part in helping to empower and transform the lives of Kenyans through innovation and investment.

How did we deliver value to them during the year?

On a regular, ongoing basis, we deliver value to our regulators by complying with the obligations they have given us and

through communicating and engaging with them on the issues that arise. Some of the specific issues on which we have

engaged our regulators during the reporting period include:

•

The Universal Service Fund (USF)

Following on from our successfully lobbying that that interconnect and MMT revenue be excluded from the USF

payable by operators, the CA engaged a consultant to conduct a USF Access Gap Study in Nov 2015. In order to

cover the identified gaps, the consultant recommended various areas be placed into viable bidding lots and financed

by USF. As the next step, we expect the Project Implementation Report to be released in June 2016. We continue to

engage with the CA in this process.

•

SIM Registration Regulations

During the reporting period, the CA amended the

SIM Registration Regulations and introduced new

requirements on operators to retain copies of subscriber

national Identification cards. We are working closely

with the Authority in order to construct a framework that

meets these regulatory objectives in a satisfactory manner.

•

Quality of Service (QoS) measurements

Following lobbying by the industry, the CA formally appointed an

international consultant to develop a new QoS Measurement and

Methodology Framework. In January 2016, the CA released its new

Framework for Voice, Data, Inspections and Data Verification. The

Authority intends to conduct a pilot between January and June 2016

and we continue to engage with the CA in this process.

•

Information and Communications Sector Regulations

The CA suspended its comprehensive review of the regulations

governing the sector on 9 December 2015 and commenced the

process of recruiting a consultant to undertake a Competition Study in

the Telecommunications Market by issuing an RFP for this process. We

await the outcome of this process and continue to support attempts

to grow the market and to provide consumers with the very best

offerings in terms of variety, price and quality that are aligned with

international best practices.

For further information regarding the CA

and our other primary regulators, please

visit the companion website for this

report at

https://www.safaricom.co.ke/

sustainabilityreport_2016/

FY17 GOALS

Achieve 100% compliance with

NEMA standards on emissions and

effluent discharge, and waste

management.

Achieve 100% screening of all new

suppliers for historical corruption

cases (and blacklist culpable firms).

Achieve at least four engagements

with the ICT industry on common

issues and the issuing of at least four

reports based on engagements,

with recommendations and action

plans.

Ensure that each new infrastructure

project (Listed by EMCA 1999)

undergoes an EIA and EA and

to ensure 100% compliance with

NEMA standards.