If you’re running a business in Kenya, using USSD (Unstructured Supplementary Service Data) technology is one of the most effective ways to reach your customers. USSD offers a simple, cost-effective way for businesses to engage with users via mobile phones without requiring internet access. This article provides an overview of Safaricom’s USSD tariff structure, including setup fees, session costs, and application requirements, helping businesses understand how to integrate USSD services effectively.
What is USSD?
USSD technology enables real-time, text-based communication between users and businesses via mobile phones. It allows customers to interact with businesses for services such as checking account balances, paying bills, or receiving updates without using mobile data. Safaricom allocates USSD codes in the 2xx, 4xx, 6xx, and 8xx ranges for various services.
How to Apply for a USSD Code
To apply for a Safaricom USSD code, businesses need to follow these steps:
- Complete the Application Forms: Fill out the USSD Application Form and Corporate Application Form. Ensure all required information is accurate to avoid delays.
- Submit Supporting Documents: Attach the following documents to your application:
- Confirmation of payment for the relevant fees.
- A signed copy of your Company R12.
- A current Communications Authority of Kenya (CAK) license.
- A signed Customer Service Provider (CSP) agreement.
- Pay the Setup Fees: Businesses must pay a connection fee of KES 75,000 (exclusive of tax) to get started.
Once all documents are submitted, Safaricom will process your application, and you will be allocated a USSD code.
USSD Fees and Charges
Safaricom’s USSD services come with a range of fees, which are divided into setup costs, maintenance charges, and session-based fees.
- Test-Bed Fees
- Connection Fee: KES 75,000 (one-time payment).
- Initial Test-Bed Fee: KES 10,000 for one month.
- Test-Bed Renewal: KES 15,000 per month after the initial one-month period.
- Monthly Maintenance Fees
Businesses are required to pay a monthly maintenance fee, depending on their payment plan:- Prepay Plan: KES 25,000 per month, plus a refundable deposit of KES 25,000.
- Post-pay Plan: KES 25,000 per month, with an additional refundable deposit of KES 25,000.
- Session Fees
- Financial Institutions and Content Providers: KES 1 per session, making it affordable for businesses to offer USSD services.
- Post-Pay Tariff: For post-paid businesses, session costs are covered by the CSP (Customer Service Provider), reducing the direct costs to the company.
Benefits of USSD for Businesses
- Cost-Effective Customer Engagement: With session fees as low as KES 1, USSD offers an affordable channel for businesses to interact with customers, especially for services like balance inquiries or bill payments.
- No Internet Required: USSD is accessible on any mobile phone without the need for an internet connection, making it ideal for businesses targeting a wide audience, including those in remote areas.
- Real-Time Transactions: USSD provides immediate feedback and interaction, which is crucial for services that require quick responses, such as mobile banking and customer support.
Setting up a USSD code with Safaricom provides businesses with an invaluable tool for real-time, cost-effective communication with customers. By understanding the fees and application process, businesses can effectively plan their budget and leverage USSD technology to enhance customer engagement and streamline services. Whether you’re running a financial institution, content service, or any business that needs direct access to customers, USSD is a powerful and affordable solution.
