Mpesa expected to split from safaricom ; what to expect- Financial analysts.
The famous mobile money channel, Mpesa expected to split from safaricom.
According to a financial analyst, Gichuki Kahome, the split implies that M-pesa will now be regulated by CBK and not Communications Authority of Kenya.
Gichuki stated,”The intention is not to separate Mpesa and put it into a different company, and then sell shares.The split is from a regulator’s point of view.That means Mpesa would be regulated by CBK not Communications Authority of Kenya”
In a recent post MPC interview, CBK governor said that the split may happen before the end of the year or by January.
Reasons behind the split According to Gichuki Kahome
1.”Kenya Kwanza said that it’s unfair for Safaricom to be making billions out of the misery of cash-stripped hustlers.
They promised to reduce the interest rates on Fuliza (Which they already did) and also do something about the mandatory transaction charge”
2.”Gem MP Elisha Odhiambo had proposed an Amendment Bill to address concerns that Safaricom had become too big.This is through it’s dominant market share in voice, mobile data, and mobile money.
However, only 2 of 349 members showed interest in debating the bill
What will happen incase of a split
1. Safaricom will be able to form a mega digibank that would take the war for banking services from the traditional banking halls to customers’ phones.
2.More financial services. Mpesa under CBK can apply for licences to offer more services to it’s users.
More services to users include
1. Fuliza for business
2.Clear Money Transfer limits. Mpesa users could be able to send more than the 300K current limit
3. Mpesa could also offer forex exchange, credit cards and ATM services.
Implications of a split
1. If Mpesa was regulated by CBK, this would create a new war in the local and regional market for customers seeking banking services.
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