Airtel Money has finished separating its mobile money operation from its telecommunications operation.
Airtel Money Kenya Limited, which would effectively run the mobile money arm, was created as a result of the journey that began in 2019 and that eventually took place. Rose Mambo was appointed Chair by Airtel Money Kenya Limited back in July.
“The completion of this restructuring enables AMKL to ring-fence its operations and focus exclusively on its mobile money business. Significantly, this sets the foundation for AMKL to enhance governance over its mobile money business, strengthen its operations, and offer better services to its customers.CBK licensed AMKL as a Payment Service Provider (PSP) in line with the National Payment System Act, 2011 on January 21, 2022, and also granted a transition period to complete the transfer,” a statement by the CBK reads.
“CBK has engaged PSPs to ensure that the activities under CBK’s supervision are appropriately ring-fenced from other business lines. This will allow the PSPs to protect their CBK-regulated activities from shocks emanating from the other business activities, strengthen governance, enhance resilience, and focus on improving its services to Customers,” the statement concluded.
Safaricom and M-Pesa will split
As the first mobile money service to be established outside of a telco’s primary operations, Airtel Money. With the split anticipated as early as January 2023, Safaricom is anticipated to do the same with M-Pesa. Many believe that a holding company will be established, which will house both Safaricom and M-Pesa as separate legal businesses. The precise structure following the split is still uncertain.