Vodafone slams proposed split of Kenya's M-PESA as 'ridiculous'

Bob Collymore, CEO, Safaricom

Safaricom Ltd, East Africa’s biggest mobile-phone company, would have to reconsider future investment in Kenya if proposals to break up the company are implemented, the head of mobile money at parent Vodafone Plc said.

The company 40 percent owned by Newbury, England-based Vodafone was found to be Kenya’s dominant carrier in a draft report by U.K.-based advisory group Analysys Mason. The study was commissioned by the Communications Authority of Kenya to check whether the market leader had abused its position.

The report recommends Safaricom opens up its mobile-money platform known as M-PESA to transfers from competitors’ services at prices determined by the regulator. Separately, Kenyan opposition lawmaker Jakoyo Midiwo is also proposing a law to force a Safaricom split, a plan that Chief Executive Officer Bob Collymore has called “plain stupid.”

Read more: Vodafone Slams Proposed Split of Kenyan M-Pesa as `Ridiculous’ – Bloomberg