After more than two years of legislative pressure from the Kenya Information and Communications (Amendment) Bill, which reportedly sought to separate all telcos from their mobile money businesses, Safaricom will split from its own mobile-money platform, M-Pesa, by January 2023.
According to TechWeezy, Safaricom CEO Peter Ndegwa has revealed, around mid-2022, that the separation of the two businesses will see the creation of a holding company, which will manage the telco’s mobile money services, towers, data services, and the Ethiopian branch ( which is already up and running in three cities).
In 2021, Business Daily reported that Safaricom controlled about 65% market share in voice while its mobile money business had virtually no competitor.
As for M-pesa, analysts at Genghis Capital had estimated the split of M-Pesa from Safaricom and its subsequent solo listing on the Nairobi Securities Exchange (NSE) will unlock more value for the payments platform.
Source: Business Daily, TechWeezy, TechCabla
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