26 September, 2008

Zains New Vuka Tariff !

Zain Kenya yesterday launched a new product VUKA tariff plan that will see their subscribers pay Kenya Shillings 8/- per minute on per second billing accross all networks!!!SMS cost is Kenya Shillings 3 bob per SMS accross all networks. That is the cheapest tariff charges being offered in Kenya among the major networks i.e Safaricom, Orange and Econet !Zain has taken a bruising battle to Safaricom and unlike previous practice Safaricom slumbers and continues to take the fatal blows to the dismay of its subscribers!

Safaricom IPO:
I believe that my opinion article on Safaricom Slumber is now starting to bear its truth.With the new Vuka Tariff much awaits to be seen as to how Safaricom's marketing department will counter this threat.My motto is "NEVER LOOSE A CUSTOMER".I hope Safaricom has a similar mindset.The Safaricom IPO marked the begining towards the declination of vodafone's affiliate company - Safaricom's dominance of the Kenyan mobile market! The Mobitelea Shares controversy didnt even make the matter better.I pity Safaricom shareholders as their shares continue to decline!

The Vuka Tariff Ripple:
For Zain Subscribers to change subscription to the New Vuka tariff all they need to do is dial *123*8# if on pre -paid tariff or dial *128*8# if on postpaid tariff.Vuka is value for money.Thanks Zain!Safaricom sleep still and sleep some more remember Orange and Zain are now here and with unlocked dual SIM phones around watch your subscriber base erode !


  1. I think I'll finally migrate.

    The last time I migrated from the then Kencell to Safaricom I wrote a message to those in my phone book and said I've decided to go green.

    Now I have a new message to compose to my friends. I've decided to go pink, yellow, black, green.... Lol. Seriously for the low calling and message costs I don't mind.

    You're right Safaricom has to wake up. I've a feeling they'll counter Vuka soon and then Zein will counter them and so on and so forth and before we know it we'll be making calls for 2 bob a minute across networks.

  2. Thanks Shiko-arent we just going to be happy people! Safaricom, Safaricom counter Zain(thats one of the reasons i have put up this post).Then Counter Orange broadband!

  3. Well i should say finally Zain has latched on the one thing that can unlock Safaricom's dominance in this market since they will stop the clubbing effect that Safaricom has been promoting. It would be interesting to see how the other players react especially Safaricom.

    Coming to the aspect of Safaricom shares i totally disagree with you. Safaricom will continue being a a blue chip stock in the local NSE market as much as thier share price is declining. Unfortunately Kenyan's always approach IPO's as a chance to make quick money without looking at the company fundamentals

    As for the case of Mobitelea that never influenced the pricing of shares neither or the sale to the public. It would be interesting to find out what the price of the shares will be once the market gets off its current bear run.

    But Kudo's to Zain the Vuka tariff is a brilliant idea

  4. I'm convinced. Looking forward to the battle of the Telecoms!

  5. Quite an Interesting perspective there from Bankelele.

    Hmm... Zain has very deep pockets. therefore waiting might not be in Safaricom's best interests!

    I think Safaricom, Econet and Telkom should join forces (i.e. collaborate as Industry players to counter Zain's move).

    1. Take Zain to court for unfair competitive practices

    2. Get public support by telling kenyans about the potentially damaging effects of Zains activities to the economy. Remember - Zain repatriates revenues while the other companies reinvest locally! All Kenyans will Suffer if Telkom and Econet go down unfairly...

    3. Level the playing field: Push for anti-subsidization laws and fair competition laws for foreign companies! Am sure the GOK wil not want to be seen as having swindled its citizens by offloading shares - then allowing unfair, economically damaging practices to flourish!

    Fair competition is good; unfair competition is very bad. That should be the message to CCK and GoK!

    I think other "oil victims" (e.g. KQ) would be quite interested in such developments.

  6. Yesterday was a great day for Kenyans.

    Its embarasing that safcom has been charging Ksh25 for internetwork calls at a cost of Ksh5.27 . I have to say , thay have been careless.

    MJ you been to blind , out of the 1500 employees do u want to tell us that non saw this comming..I mean we also saw Zain commanding a lead in marketting and now there they vuka. Its a pitty that Safcom has been reactive of late and even now..they will be reactive.

    Sawa MJ , this time they gat you by your balls. Bring the rates lower than 8 Ksh.Say 7 Ksh accross network and and 5 ksh within safcom...and I will still move to Zain how could you charge us 25 Ksh internet calls???

    Time to reform , bring rates down or its over for safcom. Zain has all the oil money and I promise you its getting dirtier..if u are lucky to retain the customers then you will survive another one day..

    2moro no one knows , it could be econet puching below your belt.

  7. Competition is always welcome I have both Zain and Safaricom lines (3 actually if you count the Telkom Wireless, now orange fixed plus that my employer gives me)and its ironic that it is now cheaper to call my Safaricom friends on Zain. But this single charge across all networks is brilliant and may be the answer to all this sim switching.
    I am sure Safaricom will react and it will be interesting to see how that will play currently Safaricom is the most expensive network in Kenya! but they have the ultimate customer lock in product 'Mpesa' so I don't expect them to loose too many clients.

  8. Finally i threw my green simcard into the lake and may the largest Nile perch feed on it.

    Over and Over again i've been dissappointed by the reaction of safcom whenever celtel/zain introduces a cheaper tarrif.The last time zain launched Pamoja,MJ said it was a desperate attempt to take over the market from them.This time round Safcom might just reduce their charges to kshs 9.99 coz they are obsessed with making those huge profits.

    The plot is even getting thicker.With the entry of other players let safcom expect mass exodus like the wildbeasts of Mara

    You know what?Am feeling nothing for those exploiters.Could someone do hte same with KPLC.

  9. Zain is definitely the way to go.
    I had so much to say, so just have a look at my blog post: http://peternjenga.blogspot.com/2008/09/zain-kenyas-new-vuka-tariff-now-were.html

    I had decided to wait for some days before commenting, until Safaricon aka Suffericom insulted us with that 5 bob crap for calls after 10pm.

    We just need to VUKA en masse, ama?

  10. Hi peter-you are right on point!You know i started off with a Celtel line ,but when Celtel didnt bulge as Safaricom lowered their tariff i jumped ship, i dont think it will be so difficult this time.I think the marketing mix stipulates"the customer is king" but what Safaricom has done is making them loose customers each day! ati their response is make calls 5 bob after midnight.....kwani who do they think we are vampires,night owls and the likes!Safricom is taking a Safari....shareholders, ditch your shares the hand writing is on the wall!



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