Safaricom Fired 113 Employees Over Fraud and Policy Breaches in 2024

 

Safaricom PLC (NSE: SCOM), the leading telecom operator in the country, has once again demonstrated its firm stance on integrity and accountability. In its 2024 fiscal year, the telco announced that it had terminated 113 employees due to fraud and policy breaches related to its M-Pesa and SIM registration services.

This move demonstrates Safaricom’s ongoing commitment to safeguarding customer trust, enhancing internal controls, and upholding its reputation as the country’s most reliable customer network.

Background: Safariom’s Ethics and Compliance Culture

Safaricom has long built its success on the foundation of transparency, ethics, and customer trust, and the company has developed strict internal policies to curb fraud, promote accountability, and ensure compliance with Kenyan data protection and financial regulations.

However, there have been instances where the telco giant has been accused of colluding with the police to give users information about their exact location for abduction.

The inclusion of the dismissal figures in the 2024 sustainability report underscores its commitment to transparency and accountability.

By openly revealing that 113 employees were fired for fraud and policy breaches, the telco has signaled its tolerance stance on internal misconduct.

Details of the 2024 Dismissals

The dismissal of 113 staff in fraud fiscal year 2025 (FY 25) occurred as part of Safaricom’s anti-corruption corrective measures, which fall under a blanket section of governance, business ethics, and risks.

The nature of the cases investigated fell primarily under three categories: Breach of policies/procedures, unauthorized access (57 cases), SIM swap (47 cases), and asset misappropriation (9 cases).

So to reinforce ethical standards and promote transparency, Safariom had to strengthen its anti-corruption monitoring through comprehensive audit activities, proactive risk measures, and increased target fraud reviews, reaching 7 reviews conducted in FY 25.

The company also relied heavily on technology, developing nine AI-driven fraud detection models to safeguard customer operations, which resulted in 87 percent of fraud related to social engineering.

These AI systems helped in the detection of inflated agent deposits totaling KSh 1.7 billion.

Impact on M-Pesa and Safaricom Reputation

The impact of security breaches and operational challenges on Safaricom and M-Pesa ultimately boils down to trust, which the company views as the most valuable currency.

M-Pesa isn’t just a service, it’s a lifeline for millions of Kenyans. Everything has been digitalized to pay with M-Pesa, so when network outages and concerns over data privacy arose during the 2024 finance bill protest, confidence dipped, and Safaricom’s trust scores fell below 70 percent.

After realizing the gravity of the movement, Safaricom acted fast. The company doubled down on integrity by training 98 percent of its employees on ethics, introducing a liability shift for franchise misconduct, and dismissing 113 staff linked to fraud.

To rebuild reliability, Safaricom invested in stronger systems, earning ISO 27701 certification, masking 94 percent of customers' data in Lipa na M-PESA, and boosting system uptime up to 99.8 percent.

Expert commentary and Industry Context

Safaricom’s handling of internal governance and data protection reflects a growing maturity in Kenya’s digital economy.

The telco continues to anchor its operations on transparency and accountability, principles that guided its decision to dismiss 113 employees for fraud and introduce a liability shift policy holding franchise operators responsible for staff misconduct.

Now Safaricom’s governance framework aligns with ISO 3100 risk management standards, while its data security systems meet ISO 27701 and PCI DSS certification benchmarks typically associated with global telcom giants like Vodafone and AT&T.

Safaricom’s influence extends far beyond connectivity. It powers nearly 6.5 percent of Kenya’s GDP, supports over 15,000 digitized government services through the e-Citizen platform, and serves more than 35 million M-Pesa users.

After public concerns over data sharing during the 2024 protests, Safariom strengthened its data protection maturity score from 3.4 to 3.9, signaling a stronger commitment to privacy and customer trust.

Public Reaction and Customer Confidence

Safaricom’s reputation faced one of the biggest tests in FY25 amid nationwide Gen Z-led protests against the Finance Bill 2024. The company was drawn into the spotlight over concerns about data sharing and a major network outage that coincided with demonstrations.

To rebuild goodwill, Safaricom launched community and business initiatives, including the Grow with Safaricom Business Program, which reached 1 million MSMEs, offering digital and financial literacy training.

Beyond commercial efforts, the Safaricom and M-Pesa foundations expanded their footprint, impacting more than 8 million through education, health, and empowerment projects

M-PESA, on the other hand, empowered government social protection through Inua Jamii, supporting 1.7 million vulnerable citizens.

Conclusion

Safaricom’s decision to dismiss 113 employees for fraud and policy breaches, coupled with its efforts to strengthen governance and rebuild public trust, reflects a company learning and leading through accountability.

In a year marked by political tension, data privacy debates, and digital disruption, the telco has shown that privacy is not just policy but a survival strategy.

By investing in ethics training, privacy certifications like ISO 27701, and community-centered initiatives, the company continues to position itself as more than a telecom provider.