Are you one of them

Safaricom, Kenya’s largest mobile operator, is facing increased regulatory risk which may affect its revenue stream according to analysts at Citi. One of the major threats to the company is the National Payment Strategy by the Central Bank of Kenya (CBK).

The telecommunications company is expected to record lower Mpesa revenue due to the updated fee structure which came into effect on 1st January 2021. Safaricom cut the transaction fee for low-value transfers by between 45% and 20%.

Citi analysts expect a 9% decline in Mpesa revenue at the end of the financial year 2021 due to the changes in transaction fees. The researchers also revised down fixed data revenue forecast.

“Safaricom also intends to bid for new telecom license in Ethiopia; should the bid be successful the cost of roll out, which tends to be front-end loaded, may have a negative impact on earnings in short-to-medium term,” said Citi in a research report.

37 rejected twice on Jan 14th and Jan 26th and as such remains an ALL TIME HIGH and is expected to hold until the month of May when they announce results. This however can be taken out should Safaricom announce some positive news eg entry into Ethiopia.

This move has too many obstacles, including the government grip on everything. But the population is massive.

Barrier broken 💔