The Kenyan government is considering breaking up Safaricom, the country’s largest publicly listed company, into three distinct units—mobile services, towers, and mobile money—in a move aimed at boosting efficiency and unlocking greater value.
Treasury Cabinet Secretary, John Mbadi, said the government sees “huge benefit” in the split, adding that:
“We are discussing whether to offload more shares as an entity or split them and then get the fresh valuation, and then get to that direction.”
Under the proposal, Safaricom’s telecoms division would concentrate on voice and data, the tower business would oversee infrastructure, and M-PESA would become an independent financial services company under the direct supervision of the Central Bank of Kenya (CBK).
M-PESA, which handles more than 90% of Kenya’s mobile money transactions, has long faced calls for separation due to its market dominance and the resulting competition concerns. The CBK has previously expressed support for its independence.
Safaricom, however, has resisted such pressure. In May 2024, CEO, Peter Ndegwa, argued that spinning off M-PESA would not enhance shareholder value, favoring a group structure instead. Safaricom and Vodacom jointly acquired the M-PESA platform from Vodafone in 2020.
Analysts suggest the government’s push may also be financially motivated, with a split potentially increasing the value of its 35% stake in Safaricom and generating much-needed state revenue.
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