Kenya Considers Splitting Safaricom: Reshaping the Telecom Landscape
Kenya is actively considering a significant restructuring of Safaricom, East Africa’s largest and most valuable company, which could potentially reshape the country’s telecommunications sector. The plan involves dividing Safaricom into three independent entities: a traditional telecom services provider, a tower company, and the popular mobile payments platform, M-Pesa. This strategic move is driven by the government’s goal to maximize value for both the state and investors.
Rationale Behind the Split
Treasury Secretary John Mbadi has indicated that splitting Safaricom is seen as a move with “huge benefit.” This restructuring is under discussion and requires cabinet approval. The decision also includes determining whether the government will sell its 35 percent stake before or after the breakup. According to Mbadi, the government is exploring the best way to offload shares – whether as a single entity or following the split to obtain a fresh valuation. The overarching objective is to unlock greater value for the state and investors. Safaricom currently boasts nearly 50 million subscribers, covering almost the entire adult population, reflecting its dominant position in the Kenyan telecom market.
In conclusion, Kenya’s exploration of splitting Safaricom signals a strategic shift in the country’s tech and financial landscape. The outcome of these deliberations will have considerable implications for the telecom sector, the government’s investments, and the broader Kenyan economy.
Keywords
Related Keywords: Safaricom split, Safaricom restructuring, Kenya telecommunications, Safaricom Kenya, Kenya tech news, Safaricom separation, mobile money, MPesa, Kenya business, tech moran
