Safaricom Share Price has gained by more than 17 per cent since 9th March when Kenya’s Cabinet Secretary for ICT Joe Mucheru was first quoted saying that they are against the idea of detaching M-PESA from the parent company, Safaricom.
On Thursday last week (9th), the company’s share price was trading at a one year low of Sh 15.95 compared to a high of Sh 18.8 witnessed during Tuesday’s trading session. On a span of four trading sessions, the company has gained by more than Sh 100 Billion in Market cap.
Communications Authority of Kenya on Tuesday in a press conference affirmed Mucheru’s comments saying it was however still reviewing the draft report on competition in Kenya’s telecom sector but it was against the proposal to split the world’s most successful mobile money platform from Safaricom.
“The fact that competition is needed doesn’t mean that we should break up Businesses. As a government, we won’t allow the Breakup of Mpesa from Safaricom.” said CS Mucheru during the Launch of CBA’s Loop Mobile Banking service on Monday.
In Mid 2016, Kenya’s communications authority hired Anasysys Mason to examine the country’s telecom industry on market dominance and anti-competitive behavior.
The consultant in a draft report recommended that M-pesa should be detached from its parent company preferably before December in order to enhance competition.
