Kenya takes mobile money out of telecom operations
Foreign News General

Kenya takes mobile money out of telecom operations

Kenya’s apex bank, on Tuesday, announced the successful separation of telecommunications and mobile money business of the country’s second-largest telecom, Airtel Kenya, a first in the east African nation.

The Central Bank of Kenya (CBK), in a statement issued in Nairobi, said it welcomed the milestone done by Airtel Networks Kenya Ltd, which sets a foundation to enhance governance over its mobile money business and strengthen its operations.

“This move allows the telecoms to safeguard their CBK-regulated activities from shocks emanating from other business activities, enhance resilience and help in the realisation of the National Payment Strategy of 2022-2025.” the Kenya Apex bank stated.

The separation paves way for the country’s leading telecom, Safaricom, to follow suit.

However, Kenya was a late entrant in the east African region in effecting the model that is touted as the best practice globally.

Uganda in May 2021 implemented a law that separated mobile money from the telecom operations of all service providers.

This saw the central bank regulate mobile money as telecom service operations were left under the Uganda Communications Commission.

In 2017, Tanzania became the first country in east Africa to separate mobile money from the telecom operations of firms in the country as it sought to boost accountability and efficiency in the sector.

In Kenya, the matter had been controversial as proposals for the market leader, Safaricom, to separate M-Pesa from its telecom business faced headwinds.

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