The Central Bank of Kenya (CBK) says plans to separate M-Pesa from other Safaricom businesses is still on course, and a meeting with the telecommunication company’s board over the matter will happen in the near future.
- In 2022, CBK held talks with telecommunication companies with a view to separating mobile money activities from other businesses to enhance governance and minimize shocks on bank-related transactions.
- A bill before Parliament – Kenya Information and Communications (Amendment) Bill 2022 – is also seeking to make telcos have separate accounts and produce different reports for all their businesses.
- Safaricom’s M-PESA services continue to be the key cash cow for the business, contributing 42.1 per cent of the telcos revenue in the six months to 30th September 2023, up from 39.3 per cent in the same period in 2022.
“The delay in separation is due to the tax liability which is fairly significant at KSh 75 billion and we don’t know what to do with it. But we hold that the separation ought to have happened and CBK should oversight Mpesa,” CBK Governor Kamau Thugge said during a media briefing on Thursday.
No Comment Found.