Kenya’s Safaricom now wants a bigger slice of M-Pesa and has tabled a $13.4 million deal to buy it from British firm Vodafone

Safaricom Headquarters in Westlands, Nairobi
  • Safaricom together with its South African parent company, Vodacom, are set to enter into negotiations with British firm Vodafone to buy rights to the M-Pesa service.
  • Safaricom currently pays 2% of its annual M-Pesa revenue to Vodafone.
  • Income from M-Pesa stood at Sh75 billion ($741 million) in Safaricom’s financial year ended March 2019.

Kenya’s telecommunication giant, Safaricom now wants a bigger slice of lucrative mobile money transfer service, M-Pesa.

Safaricom together with its South African parent company, Vodacom, are set to enter into negotiations with British firm Vodafone to buy rights to the M-Pesa service in a deal estimated to be worth Sh1.3 billion ($13.4 million).

Safaricom CEO, Bob Collymore, who was set to leave the firm but got his contract extended by one year, told Reuters news agency the purchase of M-Pesa rights will yield significant savings in royalties paid to Vodafone and expand the mobile money service to new African markets.

“More important than the significant savings is about us determining the future, the roadmap of M-Pesa because at the moment the roadmap is determined by Vodafone,” Mr Collymore told Reuters.

Safaricom currently pays 2% of its annual M-Pesa revenue to Vodafone while Vodacom, a South African telco operator that owns 35% of Safaricom, pays 5% in an intellectual property fee to Vodafone from its M-Pesa business, which is mainly in Tanzania.

Vodafone has a 5% stake in Safaricom while the Kenyan government controls 35% shareholding.

Income from M-Pesa stood at Sh75 billion ($741 million) in Safaricom’s financial year ended March 2019. Safaricom net profit grew by 14.7% to Sh63.4 billion in the financial year ended March 2019 on the back of strong M-Pesa and mobile data performance, marking the seventh straight year of a growing bottom-line.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Amazing transformation of 21-year-old man bullied for being born different (video)

Amazing transformation of 21-year-old man bullied for being born different (video)

Abel Mutua's movie makes over Sh4M in 5 days

Abel Mutua's movie makes over Sh4M in 5 days

Sh79,000 per month jobs for Kenyans without degrees

Sh79,000 per month jobs for Kenyans without degrees

Vera imports Baby Diapers from US, Help rebuild Boniface Mwangi's house & other stories on #PulseUhondoMtaani

Vera imports Baby Diapers from US, Help rebuild Boniface Mwangi's house & other stories on #PulseUhondoMtaani

How Janet Mbugua's husband Eddie landed Sh240 million deal with Chinese investors

How Janet Mbugua's husband Eddie landed Sh240 million deal with Chinese investors

5 things you should never do to please a woman

5 things you should never do to please a woman

British MP claims she didn't know her flat was owned by the Kenyatta family

British MP claims she didn't know her flat was owned by the Kenyatta family

Janet Mbugua's husband thrown at the centre of nasty fight at Ole Sereni Hotel [Video]

Janet Mbugua's husband thrown at the centre of nasty fight at Ole Sereni Hotel [Video]

Davido and Chioma spotted together for the first time since rumoured breakup

Davido and Chioma spotted together for the first time since rumoured breakup