Kenya’s communications authority in Mid 2016 hired an independent international consultant by the name ‘Anasysys Mason’ to examine the country’s telecommunication and broadcasting industry on market dominance and anti-competitive conduct.
The report is finally out with recommendations that M-Pesa be detached from Safaricom Ltd by December of 2017 if there is no high level of interoperability given that the latter (Safaricom) has been single-handedly setting tariffs hence forcing customers to pay higher tariffs compared to similar mobile money platforms across the world.
The report also noted that “Kenyan Mobile Money market is lacking competition when compared to the neighboring Tanzania, for instance.” In Kenya, M-PESA controls about 78% market share according to the latest data from the regulator.
The consultant also raised concerns on the favoritism towards Safaricom’s partners like the Kenya Commercial Bank (KCB) and the Commercial Bank Of Africa would be seen as not being competitive.
Safaricom CEO Bob Collymore has come out guns blazing saying he is opposed to the recommendations adding that he is “pretty hostle to the Idea.” However, he is in agreement that Kenya’s telecom industry needs to operate in conjunction with each other but this should be market driven rather than regulatory intervention.
“We can’t have other people dictating whether to break up our company or not” he was quoted by Business Daily.
Related;
Kenyan Banks launch their own digital payment platform
M-Pesa Retains Position as Tanzania’s Leading Mobile Money Platform
Interoperability
‘Anasysys Mason’ consultants have also proposed a wallet to wallet Interoperable system with capabilities that would allow a user to keep cloud accounts across the different mobile money platforms hence making it easier and convenient to transact/transfer money across different accounts.
From the recommendations, Mobile money agents will also be required to use a similar system whereby they will have to support different mobile money platforms.
According to the latest data from the Communications Authority, Safaricom Limited’s market share increased by 3.8 per cent to stand at 69 per cent from the previous quarter’s share of 65.2 per cent and 26.6 million customers.
READ; Ten Stupid Blunders that Led to Airtel’s Decline in Kenyan Market