Kenya’s bustling betting industry faced a substantial setback on Tuesday as M-Pesa, the widely-used mobile money transfer service, unexpectedly went offline.
The outage, attributed to scheduled maintenance by Safaricom, the company behind M-Pesa, lasted from 11:00 am to 2:00 pm, leaving the M-Pesa app, USSD code, and SIM card tool inaccessible.
The impact on the betting sector was significant, with estimates suggesting that Kenyans wager approximately KES 168,333 every minute.
With the downtime lasting nearly 180 minutes, betting companies are believed to have incurred losses amounting to millions of shillings.
M-Pesa plays a pivotal role in the online betting ecosystem, facilitating easy deposits and withdrawals from online wallets via the mobile platform.
The outage left only those customers with sufficient balances before the disruption able to continue betting.
For companies that had integrated alternative telecom options like Airtel Money, some customers found solace in these alternatives.
However, users who registered with Safaricom numbers were unable to access these workarounds, emphasizing the reliance on M-Pesa for smooth operations.
Safaricom confirmed the outage, citing scheduled maintenance in a statement, but has not issued a public statement confirming the restoration of services.
While the downtime has been resolved, the incident underscores the vulnerability of businesses relying heavily on a single platform.
The betting industry’s dependence on seamless operations for customer satisfaction highlights the need for diversification and integration of multiple payment options.
FindmoreAfrica confirmed the resolution of the downtime, allowing M-Pesa users to resume transactions seamlessly.
However, Safaricom’s absence of a public reassurance regarding service restoration suggests potential lingering concerns.
This outage serves as a reminder to both businesses and customers to consider contingency plans when relying on a single service provider.
While M-Pesa remains popular, exploring alternatives like Airtel Money can prevent inconveniences during unforeseen outages.
In response to the significant losses incurred during the downtime, the Fintech Association of Kenya emphasizes the need for additional telecom operators in the market.
They assert that acknowledging vulnerabilities, fostering competition, and investing in resilience will ensure Kenya’s digital infrastructure remains robust, even in the face of unexpected challenges.
In conclusion, M-Pesa’s recent downtime serves as a wake-up call for the nation, urging stakeholders to assess vulnerabilities, promote competition, and invest in resilient systems to safeguard the digital heartbeat of Kenya’s economy.
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