@masha good point and seconded.,if you plant different crops in 3 shamba's you are betterof than the guy relying on one shamba and one crop,just that simple...its called spreading risk.

@mlennyma: True that every business has to diversify its operations to increase revenue streams and to maintain the bottomline in the face of stiff competition. However, amidst all the diversification the company cannot lose sight of why they exist and what got them where they are i.e. core business.

As much as it may be true that Safcom have the capacity to start/buy/run a bank, the level of operations and attention required to run the bank would greatly take away management time from their core business, which currently has very many issues that need sorting out as pointed out above. There is spreading risk and inviting risk!

Why on earth would they want to run Mpesa as a bank? The costs of running a bank compared to the convenience and relatively cheap maintenance of the virtual bank that Mpesa is totally beats the logic of acquiring a physical bank!

each segment operates as a unit cost by financing its operating and expansion strategies without being dependent on the mother company. E.g. When equity opens a branch, the branch should sustain itself by having enough customers that pay the workers, pay rent, and generate profit for its parent company..... Bob collymore and his team will only need data on the performance of the mpesa bank to decide whether it is sutainable in the long run or should be closed down.

Its already a 'bank'. Only infrastructure is lacking

We need a new innovative approach in the banking sector to break the banks over-reliance on CBR to determine their interest rates. Maybe Safcom bank is not a bad idea for the economy although I doubt the shareholders will fancy it...

@Cde M* I read the threat this might have on roar