Kenya, 13 November 2025 - Vodacom Group has confirmed that it has no plans to separate its mobile‑money platform, M‑Pesa, from its core telecom business in Kenya, despite growing pressure from regulators and the Treasury to restructure Safaricom Plc.
The move comes amid debates over fiscal benefits, regulatory oversight, and market competition.
During a recent earnings call, Vodacom CEO Mohamed Joosub told investors:
“We’re not looking to separately list the financial services businesses; we do see it intricately linked to our value proposition that we’re providing to the customer.”
He further explained that M‑Pesa’s integration supports customer loyalty and strengthens the overall telecom-fintech ecosystem:
“We see it more closely linked … coupling that with loyalty going forward… The positioning for us is that we have something very different to offer from a normal telco.”
The backdrop is a push by Kenya’s Treasury and the Central Bank of Kenya (CBK) to split Safaricom into three separate units: a core telecoms business, a tower infrastructure company, and the mobile-money platform. Officials argue that such a separation could generate significant fiscal benefits and improve regulatory oversight. The Treasury has estimated the potential tax liability at KSh 75 billion if a split occurs.
However, Vodacom and Safaricom maintain that M‑Pesa is a core strategic asset, now contributing about 42 percent of Safaricom’s total revenue, with earnings growing to Sh88.1 billion in the most recent period—up from Sh77.2 billion in the comparable prior period.
Other sources corroborate these positions: Bloomberg reported that Safaricom “sees no compelling case for splitting its mobile-money service M‑Pesa into a separate unit under a new group holding structure.”
TechPoint and DevelopingTelecoms note that while the government and regulators are advocating for separation, Safaricom argues that it would undermine operational synergy and shareholder value.
Why It Matters
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M‑Pesa is not merely a fintech service; it is deeply entwined with Safaricom’s telecom operations, providing a competitive edge through bundled services, deeper customer engagement, and more frequent usage. Separating it would affect not only the company’s valuation and shareholder returns but also Kenya’s broader digital finance ecosystem, where M‑Pesa plays a critical role in transactions, savings, and lending.
Analysts caution that the high tax liability, along with Safaricom’s opposition, complicates any potential structural change. The CBK and Treasury are left balancing the desire for fiscal gain, regulatory oversight, and the need to maintain financial stability in the mobile-money sector.
What This Means for Stakeholders
For investors, Vodacom’s decision eliminates the immediate possibility of a separate listing for M‑Pesa, meaning returns remain tied to the broader company performance. For regulators, the move signals that oversight may need to focus on enhanced disclosure, risk management, and ring-fencing of M‑Pesa within the existing corporate structure rather than outright separation.
For the Kenyan government, the debate highlights a tension between revenue ambitions and the need to protect a system that millions of Kenyans rely on for everyday transactions. CBK Governor Kamau Thugge has stated that while a separation could boost government revenues, it must also consider operational and market impacts.
Vodacom’s ruling out of an M‑Pesa spin-off underscores the strategic importance of fintech integration in driving value for telecom companies while spotlighting ongoing tension with the state.
The conversation has shifted from whether M‑Pesa should be separated to how it should be governed within Kenya’s regulatory and fiscal framework.
With M‑Pesa now a dominant revenue driver and a critical part of Kenya’s digital economy, its future structure will continue to attract scrutiny from investors, regulators, and the public alike.
The integrated M‑Pesa now contributes 42% of total revenue, and the decision highlights tensions between fiscal ambitions, regulatory oversight, and maintaining operational synergy in Kenya’s fintech ecosystem. Analysts note that separating M‑Pesa could trigger a tax liability of KSh 75 billion and affect the broader digital finance market.

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