According to reports by a Kenyan blog; TechWeez, the Communications Authority of Kenya (CA) hired Analysys Mason Group; an independent international consultant firm to look at the country’s telecommunication and broadcasting industry on market dominance and anti-competitive conduct, recommending that M-Pesa should be split from Safaricom to keep up a competitive environment.
According to the press statement that was released, the two telecom firms were required to operate in separate offices, with separate staff below board level, separate branding, separate accounting and separate business operations and support system, customer support systems and management information systems.
“As the government, we do not support regulation that splits companies based on innovation. To say that any company that innovates something – they are likely to be penalized by law – I believe, is unfair.” said Joe Mucheru, Cabinet Secretary, ICT, TechWeez reports.
The ICT cabinet secretary noted that government disapproves of measures that would stifle innovation as it wants companies to expand by investing in new products and technology.[related-posts]
The country has existing laws that can be used to stimulate competition without having to introduce new regulations.
“It would be a shame if we now started punishing innovation by just legislating without taking into account our future and where we want to go in a more globalized market. I believe that is a decision that a board and company can take. It does not have to be taken through regulation.” Joe Mucheru added.