The more than 140,000 subscribers on Safaricom's Karibu post-paid tariff have until May 26 next year to enjoy the package which allows one to make calls at a significantly cheaper rate for one month.
In an interview with Business Daily Bob Collymore, CEO, Safaricom said that the firm has today - Monday May 26 - terminated two of its post-paid calling tariffs, but retained current subscribers of the monthly billing service for one more year - till May 26 2015.
This means Safaricom will from today not sign up any additional subscribers to the service though existing users will continue enjoying the offer till May 26 2015 after which it will be discontinued.
"We would like to notify our customers that the Karibu PostPay bundles (1,000 and 2,500) have been discontinued and shall not be available to new customers with effect from Monday, 26th May, 2014," read a notice from Safaricom in the dailies on Sunday.
The Karibu post-paid tariff has two price plans - Kshs 1,000 per month package where a subscriber gets 900 minutes talk time for on-net calls, 100 minutes for off-net calls, 100 megabytes of data and 100 on-net SMSes and the Kshs 2,500 per month bundle which gives subscribers 2,200 minutes for on-net calls, 300 minutes off-net, 250 megabytes of data and 250 on-net text messages.
Bob Collymore, CEO, Safaricom told the publication that that the company last week received approval from the Communications Authority of Kenya (CAK) to cease offering the service as it had become unsustainable.
Karibu post-paid bundles subscribers pay less than Kshs 1 per minute to make calls compared to other Safaricom customers on pre-paid plans who are charged Kshs 4 per minute for calls made during peak hours (8am and 10pm).
The Karibu post-paid bundles were introduced in 2011.
Current industry stats from regulator CAK indicate that in the three months to December, Safaricom's post-paid clients grew from 312,528 to 431,425, a 30 per cent growth.
During this three-month period, Airtel Kenya's post-paid clients grew 4.5 per cent to 124,355 while yuMobile's clients increased 18 per cent to 1,572. Orange saw its post-paid clients decrease by nine to 3,151.
CAK says that the country's total post-paid subscriptions during the three months increased by nearly a quarter, signifying the growing popularity of these packages.