The Strategic API Shift

Powering Safaricom’s Growth Beyond M-PESA

Safaricom has long been a leader in Africa’s telecom industry, with M-PESA revolutionizing digital financial services. However, as global telecommunications evolve, Open APIs are emerging as the next frontier of innovation. By adopting an OpenAPI strategy, Safaricom can unlock new revenue streams, expand its developer ecosystem, and reinforce its market leadership.

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The GSMA Open Gateway initiative presents a transformative opportunity for Safaricom to leverage standardized network APIs. By adopting Open APIs, Safaricom can enhance service delivery, bolster security, and accelerate 5G-driven digital transformation. This case study explores how Safaricom can lead Africa’s Open API revolution and maintain its edge over competitors like MTN and Orange.

Beyond M-PESA: Powering the Next Wave of Innovation

Safaricom’s Market Position

As Kenya’s leading telecom provider, Safaricom is recognized for its innovation, particularly through M-PESA, which has advanced financial inclusion across Africa. However, as the telecom landscape shifts towards API-driven ecosystems, Safaricom must evolve its business model to remain competitive in the digital economy.

The Rise of Open APIs in Telecom

Globally, telecom operators are leveraging Open APIs to monetize networks, enhance services, and foster developer ecosystems. The GSMA Open Gateway initiative is accelerating this transformation, making Open APIs a strategic necessity for operators seeking sustainable growth.

Challenges Facing Safaricom

Despite its strong position, Safaricom faces several challenges:

Intensifying Competition

MTN and Orange are aggressively expanding their API strategies.

Security & Fraud Risks

Increased digital transactions demand robust fraud prevention and identity verification measures.

Limited Cross-Border Scalability & Integration

As Safaricom expands M-PESA to countries like Ethiopia, it faces barriers like payment infrastructure fragmentation, lack of standardization, and integration complexity.
Monetization Gaps

Safaricom has yet to capitalize on B2B API-driven monetization fully.

5G Readiness

API-driven services are essential to unlocking 5G’s full potential.

Strategic Solution: hSenid OpenAPI Gateway

The hSenid OpenAPI Gateway provides a scalable, secure, and revenue-driven API ecosystem for Safaricom. Below, we outline how this platform can drive tangible benefits.

01

Safaricom’s Market Position

MTN, Cell C, and Telkom have launched GSMA Open Gateway APIs, enhancing fraud detection and security. To maintain its leadership, Safaricom must act swiftly by adopting similar capabilities via the hSenid OpenAPI Gateway.

02

Enhancing M-PESA’s API Ecosystem

M-PESA generates KES 77.22 billion in revenue (16.6% YoY growth), contributing 43% of total service revenue. Future scalability requires a robust API infrastructure.

Standardized GSMA Open APIs
simplify third-party integrations.

Fraud detection APIs

strengthen security.
Cross-border capabilities
ensure compliance with global payment regulations.

03

Strengthening Cybersecurity & Fraud Prevention

With digital banking fraud up by 45%, Safaricom must implement proactive security measures.

Number Verification API
Validates user identities to prevent fraud.
SIM Swap API
Detects unauthorized SIM changes, preventing account takeovers.
Advanced Authentication APIs
Secures high-value transactions.

04

Global Network & Strategic Partnerships

The hSenid OpenAPI Gateway empowers telcos to expand their reach, forging alliances and unlocking new digital revenue streams. This future-proof strategy positions Safaricom as a leader in Africa’s telecom evolution.

05

New Revenue Streams & Monetization Opportunities

The hSenid OpenAPI Gateway offers a dynamic suite of APIs, creating opportunities for B2B revenue generation and market expansion. Safaricom can:
Unlock high-value API revenue streams.
Dominate new markets and redefine digital services.
Secure a first-mover advantage over competitors.

06

Built for Telecom API Success

Designed with telecom-grade reliability, the hSenid OpenAPI Gateway aligns with GSMA Open Gateway standards, enabling Safaricom to:
Seamlessly adopt GSMA Open APIs.
Reduce time-to-market for new digital products.
Scale its API ecosystem beyond Kenya into Ethiopia and other markets.
Integrate with Red Hat OpenShift, ensuring cloud compatibility.

Success of GSMA Open API Gateway

The GSMA Open Gateway initiative is transforming telecoms through standardized network APIs.

Region Use Case Details Impact / Success
Brazil Enhancing Digital Security In December 2023, Claro, TIM, and Vivo launched Number Verification, SIM Swap, and Device Location Verification APIs under the GSMA Open Gateway. Strengthened fraud detection capabilities and reinforced national digital infrastructure resilience against cyber threats.
Europe Streamlining User Authentication Orange in France and Spain deployed SIM Swap and Number Verification APIs to improve user verification processes. Reduced reliance on SMS-based authentication, lowered fraud risk, and enhanced overall digital identity security.
Africa Reducing Fraud in Mobile Finance MTN Group and Telefónica: Number Verification and SIM Swap APIs significantly reduced fraud in mobile financial services. Improved trust in mobile financial services and helped mitigate identity theft and unauthorized transactions.
The adoption of Open Gateway APIs is accelerating digital transformation, and Safaricom can leverage the hSenid OpenAPI Gateway to drive security, innovation, and monetization in Africa’s telecom market.

The Time to Lead is Now

As global telcos unlock new revenue through Open APIs, Safaricom has a unique opportunity to lead Africa’s digital transformation.
hSenid Mobile, GSMA-certified with 27+ years of telecom expertise, offers a future-ready OpenAPI Gateway that ensures compliance, scale, and developer-friendly deployment without disrupting existing infrastructure.
From fintech to fraud prevention, we bring the platform, partnerships, and people to power Safaricom’s next wave of growth.
Let’s shape the future of Africa’s API economy together. Explore the opportunity.