Kenya's Central Bank has approved a $1.6 billion stake sale in Safaricom, marking a significant development for East Africa's largest telecommunications company and mobile money operator.

The regulatory greenlight comes as Safaricom continues to innovate in the digital payments space, recently launching Shiriki Pay, a new feature allowing controlled shared spending on its M-PESA platform. The mobile money service remains dominant in Kenya's digital payments landscape.

The company has been expanding its fintech offerings amid growing competition in the mobile money sector. Rival Airtel Money is planning to launch an overdraft service to challenge Safaricom's Fuliza product, which currently holds a monopoly in the mobile lending segment.

Safaricom's M-PESA platform has been making headlines with its technological advancement, including a move toward blockchain technology and the introduction of stablecoin capabilities. The platform recently faced public scrutiny over automatic deductions related to Kenya's health levy, prompting the company to issue clarifications about its payment processes.

Market Impact

The stake sale approval represents one of the largest transactions in Kenya's telecommunications sector, highlighting the strategic importance of Safaricom in the region's digital economy. The company serves as a crucial infrastructure provider for financial inclusion, processing millions of transactions daily through its M-PESA platform.

The development comes at a time when Africa's mobile money market is experiencing rapid transformation, with traditional telecom operators evolving into comprehensive digital financial services providers. Safaricom's continued innovation in payment solutions and digital banking services positions it at the forefront of this evolution.