Citi raises red flag on plan to control Safaricom’s prices

Citi analysts say Safaricom’s M-Pesa revenue could face headwinds arising from subdued private sector growth. FILE PHOTO | NMG

The proposed regulation of consumer prices in the telecoms sector is likely to eat into market leader Safaricom’s #ticker:SCOM earnings, Citi analysts have said.

Telecoms sector regulator, the Communications Authority of Kenya (CA), last week gave the clearest signal that it plans to implement the findings of a study it commissioned in the wake of mounting concerns that the operating environment was stuck against smaller telecom firms.

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