Archive · 20 Aug 2025
Kenya Considers Splitting Safaricom into Three Units
Kenya's government is thinking about breaking up Safaricom, the biggest company in the country.
They might split it into three parts: a phone company, a tower company, and M-Pesa, which is like a digital wallet.
The government also might sell some of its shares to make more money.
This plan still needs to be approved, but it could help the government keep an eye on how M-Pesa works.
Some experts think this might not be a good idea, while others believe Safaricom is already preparing for this split.
Kenya is considering splitting Safaricom Plc into three units.
The potential split includes a telecommunications firm, a tower operator, and the M-Pesa platform.
The government may also reduce its 35% stake in Safaricom to boost revenue.
A final plan needs cabinet approval; Safaricom shares rose following the news.
The split may help the central bank supervise mobile money units like M-Pesa.
- Who
- Kenya's government, Safaricom Plc, and its shareholders.
- What
- Kenya is considering splitting Safaricom Plc into three units.
- When
- The plan is under consideration as of the article's publication date.
- Where
- Kenya
- Why
- To potentially boost revenue, allow better fintech supervision, and revalue the business.
Arguments Against the Split
Arguments For the Split
Strategic Sense vs. Valuation
Arguments Against the Split
Splitting the company makes little strategic sense.
Arguments For the Split
Splitting the company could offer an opportunity to revalue the entire business.
- Company
- Safaricom Plc
- Government Stake
- 35%
- Potential Units
- Telecom, Tower Operator, M-Pesa
- Share Price
- Rose as much as 3.4%
- Tax Dispute
- Safaricom owes an estimated 75 billion shillings ($580.5 million)