NAIROBI – Vodacom Group, the majority shareholder in Kenya’s Safaricom, has definitively ruled out splitting its M-Pesa mobile money platform from the core telecommunications business, asserting that the two are “intricately linked.” The announcement, made during a recent investor briefing, pushes back against sustained pressure from Kenyan regulators, including the Central Bank of Kenya (CBK) and the National Treasury, who have long advocated for the separation to enhance regulatory oversight and competition.

Vodacom Group CEO Mohamed Joosub stated during an earnings call on Monday, November 11, 2025, that the integration of financial services with voice and data provides a unique value proposition to customers. “We're not looking to separately list the financial service businesses; we do see it intricately linked to our value proposition that we're providing to the customer,” Joosub explained. He further emphasized the synergistic relationship, adding, “In fact, we see it more closely linked and then coupling that with loyalty going forward.”

This firm stance directly counters the ambitions of Kenyan authorities. The CBK has been a vocal proponent of unbundling M-Pesa to place it under its direct supervision as a financial service provider, separate from the telecommunications arm which is regulated by the Communications Authority of Kenya (CA). This push is also reflected in legislative efforts, such as the revived Kenya Information and Communications (Amendment) Bill, which seeks to compel telcos to operate their mobile money services under a separate license. Proponents argue that a split would level the playing field and mitigate risks associated with Safaricom's market dominance.

Financial Powerhouse at the Center of Debate

The debate is underscored by M-Pesa's immense financial significance. According to Safaricom's latest financial results for the half-year ending September 30, 2025, M-Pesa revenue grew by 14% to KSh 88.1 billion, now accounting for a staggering 45.4% of the company's total service revenue in Kenya. The platform processed transactions worth KSh 20.2 trillion during this six-month period, highlighting its systemic importance to the Kenyan economy. For the full financial year ending March 31, 2025, M-Pesa revenue reached KSh 161.1 billion.

However, the path to separation is complicated by significant financial hurdles. CBK Governor Kamau Thugge has previously acknowledged that a split could trigger a substantial tax liability for Safaricom, estimated to be around KSh 75 billion (approximately $500 million). This tax implication, coupled with Vodacom's strategic vision, presents a formidable obstacle to the proposed restructuring.

A Divergent Path from Regional Peers

Vodacom's decision places it at odds with the strategy of its regional competitors. MTN Group, a major rival, recently received shareholder approval in July 2025 to separate its mobile money business in Uganda into an independent fintech company. This move is part of MTN's broader “Ambition 2025” strategy to unlock value from its financial services platforms across Africa. Similarly, Airtel Africa completed the separation of Airtel Money from its telecommunications business in Kenya in October 2022, with the new entity, Airtel Money Kenya Limited, now licensed and regulated by the CBK.

These competitors argue that separating their fintech arms allows for greater flexibility, focused growth, and the ability to attract specialized investors. Airtel's move was explicitly designed to “ring-fence its operations and focus exclusively on its mobile money business.”

Implications for Kenya and East Africa

Vodacom's commitment to an integrated model means that for the foreseeable future, M-Pesa will remain deeply embedded within Safaricom's broader service offerings. This strategy leverages the powerful network effects between the telco and its financial services, a synergy that has been instrumental in M-Pesa's rise and its role in dramatically increasing financial inclusion in Kenya from 26% in 2006 to over 84% in recent years.

For the Kenyan public, the decision means continued access to M-Pesa as part of a bundled service ecosystem. However, the regulatory debate is unlikely to subside. The government, which holds a 35% stake in Safaricom, has also expressed interest in a split, believing it could unlock value for the state. As M-Pesa continues to expand its services into areas like insurance and wealth management, and deepens its presence in the wider East African region, including Ethiopia, the pressure for a dedicated regulatory framework will likely intensify. The standoff between Vodacom's strategic imperatives and the Kenyan government's regulatory goals will remain a defining issue for the future of Africa's most successful mobile money platform.