Safaricom PLC is considering transferring its M-Pesa mobile money services business into a subsidiary, according to its chairman.
M-Pesa, which was the world’s first mobile phone-based money transfer business, has grown to account for almost half of Safaricom’s yearly income in the last 15 years.
According to Michael Joseph, the company’s chairman, no schedule has been set for converting the firm into a subsidiary.
The governor of the central bank, Patrick Njoroge, had earlier in the day warned MPs that changing M-Pesa into a subsidiary would separate it from the rest of the company’s activities.
The move is part of a larger attempt by telecom companies to decouple their banking services from their main operations.
M-Pesa’s 30 million users, even those with simple feature phones, may send money, make payments, save, borrow modest sums, and even buy micro-insurance.
Safaricom has also become the most profitable company in East Africa as a result of its rapid expansion.
Recently, the MPESA Super app was honored at the Mobile World Convention in Barcelona, Spain for its innovation in tackling problems in the mobile banking industry.
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