A trusted source familiar with the proceedings intimated to us that dynasties are really crying in the toilet. More to follow.
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sasa tutianunua shares za mpesa ama tutabaki na za safaricom?
I said it here kitambo. …
Don’t touch Safaricom shares even with a ten foot pole.
mbona?
na wale wase walinunua 5bob 2002?
But still safcom will be owner of MPESA, how are its shares affected by the separation?
I Could be wrong but separation would just create mpesa company as an independent subsidiary fully owned by safaricom and thus absolutely no effect on their bottom line, or share price. Just like kq and jambojet.
This was in the offing kitambo since Kibaki’s time. Safaricom plus Mpesa is a monolith that hinders competition. Mpesa has made Safaricom monopolise Sim1 and the rest are left to fight over the less prestigious Sim2 slot
But with a separate board. Pressure will then mount for an IPO for the vultures to swoop in
:D:D:D ile ya @cortedivoire
If Mpesa is seperated from Safaricom and turned into a bank, it will be the biggest bank in Kenya.
Policy makers think that they’re trying to make it a fair game, but M-Pesa will just get bigger and bring unfair competition to the banking industry.
Ikifanywa bank Gatheca Kutesa II atajinyonga
The ease in regulations is the main reason MPESA is ahead of the other alternatives, and also why safaricom fought Equity bank. If subjected under regulations and they will eventually feel the competition.
Safaricom has the data of almost every Kenyan adult with a phone – about 36 million Kenyans.
Almost everyone uses M-pesa.
Now imagine if Safaricom starts to offer long-term loans like banks – but instead, it uses M-pesa statement to figure out the eligibility. This means they would easily tap into the informal sector – remember at least 70% of Kenyans are employed in the informal sector and don’t qualify for a bank loan.
Those millions of Kenyans with no pay slip but transact using M-PESA would give Safaricom a huge advantage over traditional banks – and if M-Pesa comes up with a viable formula to give long-term credit (something better than Fuliza) to Kenyans with no pay slip, it could be the biggest bank in Kenya after the split.
And those other banks won’t like it. It’s not a matter of if, but when.
As long as they are on the same level, all the rest will match or even give better offers to compete. All the players have deep pockets. Shida ni access
There’s no problem here buana. Ata PayPal was a subsidiary of Ebay but became even more successful after being spun off. An independent MPESA will open up new opportunities, and I’m imagining they’ll come up with a structure that will give Safaricom shareholders a portion of the company. Hapa sioni kilio itatoka wapi, in fact kuna watu watatajirika sagwasagwa.
If it is 100% hived off, Mpesa Revenue will not trickle down to Safaricom. This loss will affect SAF Share price, as its operating income, balance sheet will shrink. On the Mpesa side, it begs to wonder how the government will deal with the spinoff and how much shares Safaricom as a limited liability company will retain vs governmet as government. Government being the greedy pig will have majority stake in Mpesa co., followed by Safaricom (Rem Govt also has a stake in Safaricom). If the objective is to milk dividends and taxes, then this will be the structure of the cap table. Otherwise it beats logic to hive off a division but still keep Saf as a dominant shareholder.
we usually use the statement to give loans, infact mpesa statements can qualify one for a loan.
now if mpesa goes full bank . it will be able to rope in 90% of borrowers and the one who have never borrowed . since an officer kazi yake ni kuangalia mpesa turnover na ku angalia business ya mtu na character KYC , na kupeana loan.
MPESA bank would have the potential of employing tens of thousands of loan officers . coz computer cant gauge a customers character
Wacha kuonea ASLA buana! This thing was proposed years and years ago by the competition authority if I recall correctly.
Si then they will just separate Mpesa from Mshwari, crooks can never run out of options
so they are ready to break up safaricom for whatever imaginary reasons but KPLC an inneficient corrupt monopoly cannot be touched ???