As we recently wrote, Zain Kenya’s move to slash voice and SMS tariffs by more than 50% has been all the rage in Kenya. What’s interesting to note is just how much Kenyans have really taken to social media and how they are engaging with corporate entities on Twitter and particularly Facebook.

According to Facebakers.com Kenya has slightly over 800,000 Facebook users, representing about 25% of Kenyans online. It seems a good number of Kenya’s on Facebook are not particularly amused by Safaricom not responding with a tariff adjustment after Zain (Bharti’s) move.

A quick look at the official Safaricom Facebook page shows this clearly. In fact, it would appear that this saga could not have come at a more inopportune time for Safaricom, who were planning a big concert dubbed Safaricom Live. On a wall post inviting people to the event, Kenyan’s did not hold back on letting it be clearly known what their thoughts of Safaricom are.Granted there are mixed sentiments, some hardliners claiming mass exodus from Safaricom, while others are grinding in their feet and claiming to stay put. It would appear as if most Safaricom subscribers have more or less been suffering patiently and Zain’s move has just blown the lid.

It’s also interesting to see the feedback on Zain’s Facebook page. It seems consumers are now pushing Zain on the data front. Interesting, now that Safaricom are not the only ones sporting a 3G license any more, the Kenyan communications regulator, CCK having issued Zain it’s 3G license fairly recently. I wonder what Bharti will do on the data front.

Moreover, with Kenya set for the introduction of mobile number portability later this year, it appears that the biggest barrier to customers shifting providers may become less of an issue.

It seems Safaricom are not intending to play into their rival’s game as per a statement released by the company:

The move by Bharti to reduce its Kenyan operation’s voice tariffs by 50% is an unsustainable pricing strategy. Zain (Bharti) seem to be banking on the Indian model of low tariffs and high volumes to increase MOU in a market with an elasticity of less than 1.  Safaricom has no intention of getting engaged in a similar pricing strategy that would undermine our business and erode value for our shareholders. Safaricom will launch aggressive promotions to limit any market share gain by the competitors and at all times protect our revenue share. Reduction in MTR’s to KES2.21 will not have a significant impact financially on Safaricom as we are net receivers of off-net calls.

In other words, Safaricom users… don’t get too excited about tariff subsidies any time soon.

This topic did not escape local tech mailing list Skunkworks, as people had multiple views on what Zain’s move means and whether or not Safaricom should or shouldn’t respond. One lister wrote:

“It is an aggressive move, they’re cutting out margins on a cash cow product in order to win market share.

The Indians are incredibly good at keeping their costs down and running a highly efficient operation. Bharti has done this before in other markets, and Safaricom will have to get used to dealing with a competent competitor in this market for the first time.”

And so, the stand-off remains.

These recent events are clearly evidence of what a change in leadership can do within a corporate. Safaricom itself is set for a change of guard as Michael Joseph steps aside for Bob Collymore. I’m sure Collymore is watching keenly.