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Regulator drops plan to split up Safaricom

Communications Authority Director General Francis Wangusi in Nairobi on December 4, 2017. PHOTO | SALATON NJAU | NMG
Communications Authority Director General Francis Wangusi in Nairobi on December 4, 2017. PHOTO | SALATON NJAU | NMG 

A revised competition report by the telecommunications industry regulator has dropped the controversial proposal calling for the splitting of Safaricom #ticker:SCOM into separate business units, drawing the ire of its rivals.

Airtel, Kenya’s second-biggest telecommunications company after Safaricom, hit out at the Communications Authority of Kenya (CA), saying failure to finalise the dominance debate and watering down of the report was hurting the smaller operators.

The CA has, however, defended the report, saying it was revised after wide consultations and input by all industry stakeholders.

The initial draft report leaked to the media in February last year had recommended designation of Safaricom as a dominant operator, which would have seen its voice and mobile money units split into stand-alone businesses that would compete with rival telecommunications firms.

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