Legislators Want M-Pesa and Safaricom To Be Separate Entities

By Carlos Onyango / July 11, 2019



M-Pesa

The parliament is now seeking to have the mobile money service provider M-Pesa, to be separated from its parent firm Safaricom.

The legislators argue that all the mobile money service providers including Airtel Money and T-Kash should be treated as banking services thus they should be licensed to operate as banks.

Narok Senator, Ledama Ole Kinais at the forefront in support of this move claiming that M-Pesa has promoted the use of stolen identity, where people use identity cards to register lines and partake in criminal activities rendering the original ID owner a culprit.

In the meantime, regulators in the mobile and financial sector are in full disagreement with the proposal arguing that serious thoughts have to be considered before making a rash decision.

The Central Bank of Kenya governor, Dr. Patrick Njoroge, the principal secretary ICT, Jerome Ochieng’ and the director general of the Communications Authority of Kenya (CA) have unanimously opposed the proposal.

“A lot of investigations need to go into this before we make any decision to de-link. Our opinion is that this needs to be thought through properly and see the pros and cons of either de-linking them or making them stay together, “says ICT PS.

Mr. Ochieng even went further and asked the MPs, if splitting M-Pesa from Safaricom, will we be encouraging innovation or stifling it?

On the other hand, the director general CA, Dr. Njoroge argued that even though the telcos and the mobile money providers are not linked in terms of services, they are revenue sources of the Telcos and thus separating them would bring shocks.

“M-Pesa or any other money in the mobile wallet does not sit in the balance sheet of the telcos. It is a separate trust that holds the money that is secure in a commercial bank. If the telco goes under or faces whatever risks, it is not a significant risk in terms of financial sector operations. But there will be shocks, we can’t always eliminate these risks just like a bank going under.” Dr.Njoroge argued.





More Articles From This Author








Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE

ARCHIVES

2019
  • January 2019 (256)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (251)
  • July 2019 (340)
  • August 2019 (293)
  • September 2019 (170)
  • 2018
  • January 2018 (291)
  • February 2018 (219)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (238)
  • June 2018 (178)
  • July 2018 (257)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (187)
  • 2017
  • January 2017 (183)
  • February 2017 (195)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (246)
  • June 2016 (183)
  • July 2016 (271)
  • August 2016 (249)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (109)
  • May 2015 (117)
  • June 2015 (121)
  • July 2015 (150)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (170)
  • November 2015 (174)
  • December 2015 (208)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950