Airtel Kenya's Smarta Bundles: A Jio-Style Disruption or Safaricom's Slow Death By A Thousand?Cuts?

Airtel Kenya’s launch of Smarta Bundles on February 13, 2025, could be the most aggressive move yet to disrupt Kenya’s mobile network market. This isn’t just another price drop?—?it’s seems more like a direct assault on two of Safaicom’s biggest revenue streams: mobile data and mobile money or M-Pesa.

For years, Safaricom has remained dominant due to its superior network quality, customer loyalty, innovative offerings, and the overwhelming ubiquity of M-Pesa which effectively ‘lock-in’ customers for the long haul. However, Airtel has been steadily eroding its market share every quarter through aggressive pricing, a rapidly growing mobile network as well as associated offerings like 5G, and a mobile money proposition that’s gaining traction.

This “death by a thousand cuts” approach?—?slow but persistent?—?seems to be bearing fruit. The launch of Smarta Bundles may represent a major turning point, similar to Reliance Jio’s disruption in India, which reshaped the country’s mobile network market and forced its competitors to react.

Smarta Bundles: A Bold Challenge to Safaricom’s Core?Business

The Smarta Bundles are clearly designed to shake up both Kenya’s mobile data market and M-Pesa’s dominance in mobile money by combining high-value data plans with a 100% cashback offer on mobile money transactions.

For KES 1,000, customers get:

• 30GB of non-expiring data
• 400 minutes to other networks
• Unlimited Airtel-to-Airtel calls
• 2,000 SMSs to other networks
• 100% cashback on Airtel Money transaction fees for paybills, bank-to-wallet transfers, and withdrawals
• Unused daily data rolls over, and remaining data carries over on renewal

For KES 1,500, customers get:

• 60GB of data (2GB daily, with rollover for unused data)
• 900 minutes to other networks
• Unlimited Airtel-to-Airtel calls
• 5,000 SMSs to other networks
• 100% cashback on Airtel Money transaction fees for paybills, bank-to-wallet transfers, and withdrawals
• Unused daily data rolls over, and remaining data carries over on renewal

The 100% cashback on Airtel Money transaction fees is the most aggressive component of this offering. Unlike M-Pesa, where users pay unavoidable transaction fees, Airtel is effectively making mobile money free to use.

This could significantly shift consumer behavior if properly communicated and executed. Over time, this move could fundamentally weaken M-Pesa’s grip on mobile financial transactions.

Airtel’s Expanding Network: A Critical Factor in Competing with Safaricom

One of Safaricom’s long-standing advantages has been its unmatched network coverage and overall quality. However, Airtel has been rapidly closing this gap with a major investment in infrastructure:

• Over 900 new network sites launched in 2024, bringing Airtel’s total to 4,200+ nationwide.
• 5G launched in 372 sites across 16 counties in July 2023, making Airtel the only other mobile network in Kenya with a widespread 5G network.
• Significant expansion into rural Kenya, where Safaricom has traditionally dominated.

Airtel Kenya’s affordable 5G pricing already forced Safaricom to lower its own 5G prices, which were previously too expensive for many consumers. Now, with network parity becoming more realistic, Airtel’s biggest challenge is convincing customers that its service quality can match Safaricom’s.

Given that Smarta Bundles are attacking both mobile money and data, Airtel is now engaged in a two-front battle against Safaricom. But if customers don’t fully trust Airtel’s network reliability, this could limit Smarta Bundles’ adoption, regardless of how good the pricing is.

Where’s the Information? Airtel Kenya’s Marketing Communications Gap

Despite the potential game-changing nature of Smarta Bundles, Airtel Kenya’s own digital platforms as of this morning still lack detailed information about the offer. However, even as their social media cover photos feature Smarta Bundles, there is no comprehensive breakdown of the features, pricing, or onboarding details on their website or across their official channels.

Meanwhile, technology blogs and media outlets have provided extensive details, including:

• How to subscribe to Smarta Bundles via USSD and Airtel Money
• Eligibility criteria for new and existing customers
• How the 100% cashback works and how users can claim it
• Data rollover terms and how it applies on renewal

It is unusual to launch a new product offering and have third parties explain it better than the brand promoting it. In contrast, Safaricom is known for its relentless marketing campaigns, ensuring every new service or bundle is clearly communicated through billboards, SMS alerts, TV ads, and an optimized up to date website experience.

This gap in Airtel Kenya’s marketing communications could slow down the adoption of Smarta Bundles. Customers need to understand the full value of the offering, how to sign up, and how it compares to their existing plans. If this does not happen, Airtel Kenya risks missing out on converting potential new users.

How to Sign Up for Airtel Kenya’s Smarta?Bundles

While Airtel Kenya itself has not clearly outlined the onboarding process across its digital platforms, the following methods are widely known for subscribing as seen on vaious media websites and technology blogs in Kenya:

USSD Option:

• Dial *544# on your Airtel line
• Select Smarta Bundles
• Choose either KES 1,000 or KES 1,500 bundle
• Confirm and pay via Airtel Money or available airtime balance

Airtel Money Option:

• Open your Airtel Money menu
• Navigate to Buy Bundles
• Select Smarta Bundles and follow the prompts

My Airtel App:

• Log in to your My Airtel App
• Go to Bundles
• Select Smarta Bundles and purchase directly

By ensuring that this process is well-documented and easily accessible, Airtel Kenya can increase uptake massively!

Airtel Kenya’s Business Growth Strategy: Possibly Taking Lessons from Jio’s Disruptive Go To Market Strategies, But with a Kenyan?Twist!

Airtel Kenya’s go to market strategy for the Smara bundes in particular closely resembles how Reliance Jio disrupted India’s mobile network market:

1. Underpricing competitors dramatically?—?Jio forced incumbents to lower prices by offering ultra-cheap data and bundled services.
2. Expanding network coverage aggressively?—?Jio built a nationwide 4G network before launching services.
3. Tightly integrating mobile network and digital financial services?—?Jio introduced JioMoney and JioFinance, embedding financial services into its ecosystem.

The parallels with Airtel Kenya’s Smarta Bundles and network expansion are clear.

However, Jio’s experience also provides a cautionary lesson. Despite its early success, Jio has recently suffered major user losses due to price hikes, proving that even aggressive disruptors can stumble if they don’t balance pricing and sustainability.

Airtel Kenya must ensure that Smarta Bundles remain viable beyond the initial promotional period?—?or risk losing customer trust just when it’s gaining ground.

The Execution Challenge: Will Airtel Kenya Get It?Right?

Airtel Kenya’s biggest challenge has never been pricing?—?it has been execution and communication from my perspective in many instances, as well as possibly countering Safaricom’s well established brand that is top of mind for most Kenyan consumers. To fully capitalize on Smarta Bundles, Airtel Kenya must:

• Drive awareness aggressively through integrated campaigns.
• Ensure in-store activations are prominent, helping users onboard easily.
• Educate users on the benefits of 100% cashback on Airtel Money transactions, a feature that could be game-changing.
• Sustain the marketing push well beyond the initial launch period, ensuring long-term adoption.

Because if Airtel Kenya doesn’t take control of the messaging now, Safaricom, as always, will counterattack and reassert its dominance.

Is Safaricom Finally Feeling the?Heat?

For years, Safaricom has been virtually untouchable.

But now, for the first time, Airtel Kenya is making serious moves that Safaricom cannot ignore:

• Airtel forced Safaricom to cut 5G prices.
• Airtel is consistently gaining market share at Safaricom’s expense.
• Now, Airtel Kenya is challenging M-Pesa with 100% cashback on mobile money fees.

This isn’t about one big knockout punch?—?it’s death by a thousand cuts!

What Do You?Think?

• Would you switch to Airtel for Smarta Bundles?
• Is this finally the moment Airtel seriously challenges Safaricom?
• Or will Safaricom’s superior mobile and M-Pesa network as well as generally better execution keep it ahead?