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Kenyan Senators Want to Split Safaricom

credit: Erik (HASH) Hersman from Flickr

TechInAfrica – Kenyan Senators confidently mention that they want Safaricom to be separated into two firms – Mobile Services and M-Pesa. The separation of Safaricom will show the mobile telephony service is controlled by the Communication Authority of Kenya (CAK) and M-Pesa division controlled by the Central Bank of Kenya (CBK), according to The Star.

Techweez recently reported that the senators believe that there should be a level playing ground for those who are in Telkom and Airtel Kenya. Those who work at the clemency of Safaricom as they owe it billions of shillings.

Senator Petronilla Were of the ICT committee said that today’s market is not a competitive market anymore. There should be a permission for other operators to work, by giving the largest operator its right, but also enabling the others to work and present innovation in the country.

According to Senator Irungu Kang’ata, Kenya’s situation today shows that one single player controls how much other operators can pay for data bundles, for calls and Short Message Service because it controls almost 90 per cent of the market. He added that in that situation, he did not imagine any other entity growing. They are not going to present more vacancies and innovation in the industry because of the dominance of one entity.

Now, Safaricom is urged to answer the issue if it will be a communication company or a banking institution. Senator Enock Wambua suggests Safaricom be split into two firms. Safaricom is the communication company, regulated by the Communication Authority of Kenya (CAK), and the M-Pesa division regulated by the Central Bank of Kenya.



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