Investigating The Impact of Crisis Communication on The Perceived Image of Safaricom among M-Pesa Agent Fraud Victims in Nairobi County, Kenya

Abstract

Cases of mobile money fraud are prevalent in Kenya, with majority of users having experienced mobile network fraud. Victims who experience this crisis expect Safaricom as the owner and custodian of M-Pesa platform to take some responsibility and help in loss prevention and recovery. Safaricom itself acknowledged rising cases of fraud and escalating levels of sophistication as an ongoing challenge. M-Pesa fraud incidents thus threaten both the reputation of the M-Pesa brand and Safaricom’s corporate image. Safaricom has put in place crisis communication measures to mitigate escalation of M-Pesa fraud and protect its image. This investigation aims at determining the impact of crisis communication on the perceived image of Safaricom among M-Pesa Agent fraud victims in Nairobi County, Kenya. The study was guided by Situational Crisis Communication Theory and Corporate Image Theory. The research utilized embedded mixed methods research design. The target population was 13,000 M-Pesa agents. Questionnaires was administered to a purposive sample of 388 M-Pesa agents who have been victims of M-Pesa fraud. Data gathering was undertaken by means of a structured questionnaire. Quantitative data was analysed using Chi-square technique in SPSS while qualitative data were analysed using thematic technique through Atlas.ti software. Results showed that most prevalent forms of fraud was fake M-Pesa reversals (74.1%). Majority of respondents (72%) did not recover any of the lost funds. However, while most respondents (57%) did not blame Safaricom for their losses, a significant proportion (43%) still held Safaricom at least partially responsible. Nevertheless, a large majority of respondents (93.0%) held a positive perception of Safaricom’s image. Chi-square results indicated a statistically significant relationship between perceived image and stakeholder engagement (χ² = 20.57, p< .01), feedback integration and perceived image (χ² = 8.73, p< .01), empathy and perceived image (χ² = 11.76, p < .01), and proactive (χ² = 9.26, p < .01). Thematic analysis revealed mixed views. Positive sentiments were that Safaricom’s approach to managing M-Pesa fraud emphasizes structured communication, accountability, and procedural support for affected customers, attentive listening and empathy as well as politeness, respect, and professionalism emerged as pervasive themes. However, some respondents expressed dissatisfaction with Safaricom’s response and call-handling, sense of powerlessness in the M-Pesa risk management ecosystem, minimal direct assistance, and procedural and communication flaws. Conclusion was drawn that all four dimensions of crisis communication namely stakeholder engagement, feedback integration, empathy, and proactive communication, enhance perceived image of Safaricom among M-Pesa agents. It was recommended that Safaricom should strengthen crisis communication systems by ensuring faster, more responsive, and empathetic engagement with M-Pesa agents and customers during fraud incidents. Safaricom’s fraud risk management strategy should focus on prioritizing strengthening internal control systems and employee vetting procedures to address insider-related data leaks highlighted by M-Pesa fraud victims. Inter-agency coordination between communication authorities and law enforcement should be enhanced to create a seamless fraud response ecosystem.