Airtel money Splits from Airtel networks; CBK Announces
The companies which previously operated as one entity that provided both mobile money and telecommunication services will now operate as different entities.
Airtel Kenya has separated its mobile cash transfer service from Airtel Networks Kenya Limited (ANK) to Airtel Money Kenya Limited (AMKL).
The Central Bank of Kenya on Tuesday announced the separation and transfer of Airtel money from mobile service provider Airtel.
"The completion of this restructuring enables AMKL to ring-fennce its operations and focus exclusively on its mobile money business. Significantly, this sets the foundation for AMKL to enhance governance over its mobile money business, strengthen its operations and offer better services to its customers," the Central Bank said.
"CBK licensed AMKL as a Payment Service Provider (PSP) in line with the National Payments System Act, 2011 on January 21, 2022, and also granted a transition period to complete the transaction."
Airtel money previously operated under Airtel Networks Kenya Limited (ANKL).
The companies previously operated as one entity that provided both mobile money and telecommunication services, which will no longer be the case.
Airtel Money Kenya Limited will now be run and regulated by the Central Bank of Kenya as a standalone business but clients’ user experience is not expected to change.
The central bank has also been pushing Safaricom to split its Mpesa into a different entity.
Safaricom chief executive officer Peter Ndegwa said the company is preparing for a split that will see it form a holding company to house connectivity, mobile money, tower, and the Ethiopian businesses as subsidiaries.
Calls to break up Safaricom have been viewed as a means to give a chance for competing operators to catch up with the telco that has dominated the payment scene.