Vodafone’s Mobile Money MD Michael Joseph slammed proposals to split Safaricom, stating the move is akin to authorities “punishing success”, Bloomberg reported.
Joseph (pictured), who founded m-Pesa during his stint as CEO of Safaricom, called the proposal ridiculous and said it would likely increase the cost of making cash transfers in Kenya, and put companies off making investments in the country.
In an interview with the news service, he said: “The whole idea that you want to split a company up because it is successful to me is just completely ridiculous. You are punishing success. Why would you do that?”
Safaricom, which is 40 per cent owned by Vodafone Group, faces the prospect of being forced to separate the mobile money side of its business from its communications arm, if proposed amendments to Kenyan law are approved by parliament.
Kenya’s information minister Jow Mucheru criticised the proposal ahead of the debate.
In a separate investigation, Safaricom’s dominance of the country’s wireless sector is being assessed by the Communications Authority of Kenya. The regulator is currently reviewing a draft report on the subject commissioned to analyst firm Analysys Mason.
Safaricom currently holds the largest market share in both the mobile money and wireless sectors in the country.