Safaricom is facing a Sh75 billion tax liability in the Central Bank of Kenya (CBK) push for the separation of M-Pesa from the telecoms business, forcing the telco to delay the move that is supposed to allow for increased scrutiny of the multi-billion shilling mobile money deals.
Discussions about the split have taken years, with Safaricom pushing for an international reorganisation so as to avoid paying taxes on the transaction. However, the CBK is keen on a total separation to give it oversight over M-Pesa, which in the year ended March 2023 transacted Sh35.86 trillion.
