The Kenyan government is weighing a split of Safaricom, the country’s largest listed company, into three independent entities covering mobile services, towers, and mobile money. Treasury Cabinet Secretary John Mbadi said the move could unlock “huge benefit” by boosting efficiency, competition, and overall value.
Under the proposal, Safaricom’s telecoms business would handle voice and data, while a dedicated tower unit would manage infrastructure. Mobile money service M-Pesa — which dominates over 90% of Kenya’s mobile money transactions — would become an independent financial services firm overseen directly by the Central Bank of Kenya (CBK).
For years, regulators and competition advocates have urged an M-Pesa spin-off to curb its overwhelming market share. The CBK has signaled support, but Safaricom leadership has pushed back. CEO Peter Ndegwa argued in May 2024 that separating M-Pesa would not enhance shareholder value, preferring a unified group structure.
The government, which holds a 35% stake in Safaricom, may also view the split as a way to maximize returns and raise critical state revenues. Safaricom and Vodacom jointly acquired M-Pesa from Vodafone in 2020, making it a central driver of growth across the region.
