The regulator contracted Analysys Mason to carry out a study of the telecommunications sector.
This followed concerns from smaller players that Safaricom's position in the market was stifling competition.
While CA says it is still reviewing the report, it notes that splitting Safaricom remains a very remote possibility.
The Communications Authority of Kenya has said that it will not implement proposals to split telecoms market leader Safaricom.
In a press conference on Tuesday, the authority said it was still reviewing a draft report on competition in Kenya's telecom sector but did not favour a proposal to split the M-Pesa mobile money business from its parent firm Safaricom.
"I wish to allay fears that the authority is planning to split the business of some market players or take such drastic actions that may destabilise dominant market players," said CA chairman Mr Ben Gituku.
However, when questioned on the logic behind the decision to reject the proposal to split Safaricom given pending stakeholder proposals, CA seemed to backtrack on its statement, saying that it remained open to all proposals put forward by Analysys Mason.
Rather, the regulator said, splitting Safaricom remains a very remote possibility.
The CA contracted Analysys Mason to carry out a study of the telecommunications sector amid concerns from smaller players that Safaricom's position in the market was stifling competition.
The draft report proposed the implementation of interoperability in the mobile money market by the end of the year, failure to which M-Pesa ought to be cleaved from Safaricom.
The authority said that it favoured "modest" market interventions that would restore competition without destabilising the market or "punishing" the market leader.
