The Communications Authority of Kenya (CA) confirmed it does not plan to force a split of Safaricom, despite recent speculation and recommendations from a report it commissioned.
Business Daily reported comments from CA chairman Ben Gituku, made at a press conference, clarifying the regulator’s stance on calls to separate Safaricom’s m-Pesa business from its communications arm.
“I wish to allay fears that the authority is planning to split the business of some market players or take such drastic actions that may destabilise dominant market players,” Gituku said.
The CA commissioned analyst company Analysys Mason to compile a report into competition in the country’s telecoms market. Although its findings are still being assessed by the regulator, a draft version leaked to the press last month revealed a recommendation the authority should consider splitting Safaricom.
Safaricom dominates the mobile payment industry and wireless market in the country. It has been the subject of speculation on its future in recent months following both the leak of the CA report and proposed changes to the law made by Kenyan national assembly member Jakoyo Midiwo which would force the company to split.
In addition to support from Gituku, the country’s Information, Communication and Technology Minister Joe Mucheru said any move to split Safaricom would “punish operators for innovation” and would discourage companies from investing in the country.