The Central Bank of Kenya (CBK) on Tuesday announced the successful separation and transfer of Airtel money from its mobile service provider Airtel.
The separation process which CBK says started in 2019 now means Airtel money will now operate under Airtel Money Kenya Limited (AMKL)
The completion of this restructuring enables AMKL to ring-fence 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. CBK licensed AMKL as a Payment Service Provider (PSP) in line with the National Payment System Act, 2011 on January 21, 2022, and also granted a transition period to complete the transfer.” CBK said in a statement.
Both AMKL and ANKL are incorporated in Kenya as separate subsidiaries of Airtel Africa Plc (Airtel Africa). Airtel Africa is headquartered in Dubai, United Arab Emirates has operations in 14 African countries, and is listed on the London Stock Exchange.
CBK says it has engaged PSPs to ensure that the activities under CBK’s supervision are appropriately ring-fenced from other business lines. This will allow the PSPs to protect their CBK-regulated activities from shocks emanating from other business activities, strengthen governance, enhance resilience, and focus on improving its services to customers.
”This effort will facilitate the realization of the vision in the National Payments Strategy 2022 – 2025, of a secure, fast, efficient and collaborative payments system that supports financial inclusion and innovations that benefit Kenyans.” CBK added