Safaricom has hinted at plans to transform into a holding company that will house the telecoms industry, M-Pesa Mobile money industry and Ethiopian unit as subsidiaries.
Despite countless requests and pressure, M-Pesa will remain a part of Safaricom, according to CEO Peter Ndegwa.
“What we intend to do, though as ourselves, is to create a group structure, so Safaricom Plc becomes a group, and then you have different businesses,” said Safaricom CEO Peter Ndegwa during an interview with a local daily.
Other businesses that Safaricom plans to put under the holding company include Digi Farm, a new tower firm they are currently setting up, and any other business they may buy in the future. Peter Ndegwa claims that mobile money is a component of the Global System for Mobile communications(GSM) industry and has greatly contributed to Safaricom’s success with clients.
Safaricom’s competitor Airtel Kenya previously announced that it has separated and transferred the Airtel Money Business from Airtel Networks Kenya Limited to Airtel Money Kenya Limited.
In a statement on Thursday, July 21, 2022, Airtel said that the new venture, Airtel Money Kenya Limited, will take over and continue the provision of Airtel Money Services in collaboration with the licensed telecommunications network of Airtel Networks Kenya Limited.
The two companies, Airtel Networks Kenya Limited and Airtel Money Kenya Limited, are fully owned subsidiaries of Airtel Africa Plc, licensed and regulated by the Communications Authority of Kenya and the Central Bank of Kenya.
When questioned about it, Safaricom CEO Peter Ndegwa responded by saying Airtel split because they needed to raise money, and it had to be done on an African scale. They sought to monetize their venture into mobile finance.
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