Ministry Seeks To Reduce Safaricom's Dominance

The ICT ministry is set to introduce regulations for debate in Parliament this week that seek to reign in on the dominance of Safaricom in the market.

The CS in the ministry Fred Matiangi says the regulations will serve to give smaller players in the market a chance to compete.

He added that the regulations will protect Safaricom's customers against monopoly and ensure they are not strangled.

According to Citizen Tv, If the new regulations are approved by the National Assembly, Safaricom could be forced to separate its mobile money unit (M-Pesa) from its mobile phone services.

This undoubtedly has the potential of weakening its position in the market. 

Rivals, Airtel Kenya, have been fighting for the regulations saying Safaricom's dominance is unfair to other companies.

Safaricom controls over 60 per cent of Kenya’s telecoms market, followed by Airtel Kenya.

The dominance debate has been ongoing for over a year, pitting the Communication Authority Of Kenya (CAK) and The ICT ministry against Safaricom.

The Communication Authority proposed 11 sets of regulations, which include one clause on fair competition and equality of treatment.

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