Kenya moves to split Safaricom as debt pressures mount
- Kenya is considering splitting Safaricom into three separate units: a telecommunications firm, a tower operator, and M-PESA.
- The government plans to reduce its ownership in Safaricom as part of a divestment strategy to raise KSh 149 billion ($1.16 billion).
- Safaricom is currently facing a debt of 75 billion shillings ($580.5 million) linked to a tax situation.
The proposed restructuring of Safaricom could enhance operational efficiency and unlock value for shareholders, especially in light of the company's strong performance metrics. However, the government must carefully manage its divestment to ensure it does not undermine the company's stability or growth potential.
