By David Ndirangu
A bill sponsored by Gem MP Elisha Odhiambo seeks to see mobile money transfer platforms split from their mother companies. This will affect Safaricom’s Mpesa, Airtel’s Airtel Money and and Telkom’s T-Kash. These requirements are set out in the Kenya Information and Communications (Amendment) Bill 2019.
The bill states that mobile phone companies should split, so that telecommunications services are separated from any other business the company wants to undertake. This will mean having separate financial statements for the various activities. The companies will also be required to apply for fresh licences from the regulators of the industry they want to venture into.
If the bill passes, companies will be given six months to comply. This will complicate the telecommunication and financial industry, especially for Airtel and Telkom who are set to merge. Any company that violates these regulations will be liable to a fine not exceeding ten million shillings. The Communications Authority will be required to regularly update Parliament about the companies’ compliance levels.
The move is seen as an attempt to reduce Safaricom’s market dominance, which stands at 70 percent. Lawmakers have in the past tried to split Mpesa from Safaricom, but have been unsuccessful.
Mr. Odhiambo said that these regulations are aimed to control the anti-competitive practices of the large companies in the sector.